CoreCivic, Inc. (NYSE:CXW) reported that Cole G. Carter, the company's Executive Vice President, General Counsel, and Secretary, sold 8,000 shares of common stock on November 1, 2024. The shares were sold at a price of $13.98 each, amounting to a total transaction value of $111,840. Following this sale, Carter holds 199,847 shares directly. The sale was conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks.
In other recent news, CoreCivic, Inc. disclosed a 6% revenue growth to $490.1 million in its second-quarter financial results for 2024, with federal revenue from ICE (NYSE:ICE) up by 7%. Despite the upcoming termination of the South Texas Family Residential Center contract, the company anticipates new potential contracts. CoreCivic's financial performance surpassed expectations, with a GAAP net income of $0.17 per share and an adjusted EPS of $0.20 per share. The company's share repurchase program continued, and it maintained a leverage ratio within its target range.
Meanwhile, as the U.S. presidential election draws near, investors and analysts are considering the potential impacts on the markets. A Trump victory could bring gains for Wall Street banks, crypto stocks, oil and gas stocks, and Trump-related entities, among others. Conversely, a Harris victory could influence sectors such as homebuilders, healthcare, and renewable stocks. These recent developments underscore the intertwined relationship between politics and financial markets.
InvestingPro Insights
CoreCivic's recent insider sale by Cole G. Carter comes amid a period of mixed financial performance for the company. According to InvestingPro data, CoreCivic has a market capitalization of $1.47 billion and has shown revenue growth of 5.84% over the last twelve months as of Q2 2024, with total revenue reaching $1.97 billion.
Despite the insider sale, there are positive indicators for the company. An InvestingPro Tip highlights that management has been aggressively buying back shares, which could signal confidence in the company's future prospects. Additionally, CoreCivic's liquid assets exceed short-term obligations, suggesting a strong financial position.
The company's P/E ratio stands at 21.83, while its adjusted P/E ratio for the last twelve months is 15.22, indicating that the stock may be reasonably valued compared to earnings. CoreCivic's price-to-book ratio of 1.01 further supports this view.
It's worth noting that while CoreCivic does not pay a dividend to shareholders, it has maintained profitability over the last twelve months, with analysts predicting continued profitability for the current year. This aligns with the company's operating income margin of 9.99% and EBITDA growth of 11.93% over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for CoreCivic, which could provide valuable context for understanding the company's financial health and future outlook.
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