In a recent transaction, David K. Churchill, the Chief Human Resources Officer of CoreCivic, Inc. (NYSE:CXW), sold a significant portion of the company's common stock. According to the SEC filing, Churchill sold 34,301 shares on November 19, 2024, at a price of $22.00 per share. The total value of the shares sold amounted to $754,622. Following this transaction, Churchill retains ownership of 179,755 shares of CoreCivic stock.
In other recent news, CoreCivic has shown promising developments in its financial performance. The company's third-quarter results for 2024 exceeded expectations, driven by a 2% revenue increase to $491.6 million and a 23% rise in normalized funds from operations per share to $0.43. These gains are attributed to robust state revenue growth and improved occupancy rates.
CoreCivic's third-quarter performance also saw an improved occupancy rate of 75.2%, contributing to a 25% increase in net operating income for the Safety segment. However, the Community segment experienced a decline in net operating income due to a legal settlement. To meet expected demand, the company is preparing to activate 18,000 vacant beds.
In a recent move, Jones Trading upgraded CoreCivic's stock rating from Hold to Buy, reflecting potential growth opportunities for the company. This decision was influenced by the anticipated political shift and increased funding for CoreCivic's largest customers, including Immigration and Customs Enforcement and the US Marshals Service.
CoreCivic has updated its 2024 financial guidance, expecting an adjusted EPS between $0.69 and $0.75 and normalized FFO per share between $1.59 and $1.65. The company has also repurchased 4 million shares and maintains a total liquidity of $365 million, with no debt maturities until 2027. These are some of the recent developments within the company.
InvestingPro Insights
As David K. Churchill, CoreCivic's Chief Human Resources Officer, divests a substantial portion of his holdings, it's crucial to examine the company's current financial standing and market performance. According to InvestingPro data, CoreCivic's stock has shown remarkable strength recently, with a 58.69% price return over the past month and an impressive 68.66% return over the last three months. This surge has pushed the stock to 85.15% of its 52-week high, indicating strong momentum.
The company's financial health appears robust, with revenue of $1.97 billion over the last twelve months and a gross profit margin of 24.34%. CoreCivic's EBITDA growth of 11.82% during this period suggests improving operational efficiency. However, investors should note that the stock is trading at a P/E ratio of 31.13, which may be considered high by some standards.
InvestingPro Tips highlight that CoreCivic has a perfect Piotroski Score of 9, indicating strong financial health. Additionally, five analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations. These insights, along with 10 additional tips available on InvestingPro, provide a comprehensive view of CoreCivic's investment potential.
While Churchill's stock sale might raise questions, it's worth noting that insider transactions are just one piece of the puzzle. The company's strong financial metrics and positive analyst sentiment suggest that CoreCivic may still have room for growth, despite the high valuation multiples.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.