Corrections Corp. of America (CXW) Shares Up 7% on Analyst Upgrade
Shares of Corrections Corp. of America (NYSE:CXW) shot up 7% on Monday after Canaccord Genuity raised their price target on the stock from $17.00 to $22.00. Canaccord Genuity currently has a hold rating on the stock. Corrections Corp. of America traded as high as $21.57 and last traded at $20.80, with a volume of 4,559,470 shares. The stock had previously closed at $19.44.
Several other analysts have also recently weighed in on CXW. TheStreet cut Corrections Corp. of America from a “buy” rating to a “hold” rating in a report on Friday, August 12th. Zacks Investment Research raised Corrections Corp. of America from a “sell” rating to a “hold” rating in a report on Friday, August 5th. Wells Fargo & Co. reissued a “neutral” rating on shares of Corrections Corp. of America in a report on Sunday, August 21st. Finally, SunTrust Banks Inc. dropped their price target on Corrections Corp. of America from $34.00 to $20.00 and set a “neutral” rating for the company in a report on Thursday, September 1st. One analyst has rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $26.33.
In related news, Director Charles L. Overby acquired 5,000 shares of the stock in a transaction on Friday, August 19th. The shares were purchased at an average price of $19.85 per share, for a total transaction of $99,250.00. Following the purchase, the director now directly owns 33,788 shares in the company, valued at $670,691.80. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Mark A. Emkes acquired 10,000 shares of the stock in a transaction on Thursday, August 18th. The shares were bought at an average price of $17.19 per share, for a total transaction of $171,900.00. Following the purchase, the director now owns 20,755 shares in the company, valued at $356,778.45. The disclosure for this purchase can be found here. Company insiders own 1.80% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. LS Investment Advisors LLC raised its position in shares of Corrections Corp. of America by 5.7% in the third quarter. LS Investment Advisors LLC now owns 7,429 shares of the real estate investment trust’s stock valued at $103,000 after buying an additional 403 shares during the last quarter. Creative Planning raised its position in shares of Corrections Corp. of America by 416.7% in the second quarter. Creative Planning now owns 3,100 shares of the real estate investment trust’s stock valued at $109,000 after buying an additional 2,500 shares during the last quarter. Hillsdale Investment Management Inc. acquired a new position in shares of Corrections Corp. of America during the second quarter valued at about $123,000. Advisor Group Inc. acquired a new position in shares of Corrections Corp. of America during the second quarter valued at about $138,000. Finally, Spirit of America Management Corp NY acquired a new position in shares of Corrections Corp. of America during the third quarter valued at about $142,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.
The firm has a market cap of $2.45 billion, a P/E ratio of 11.82 and a beta of 0.77. The stock’s 50-day moving average is $14.72 and its 200 day moving average is $24.90.
Corrections Corp. of America (NYSE:CXW) last released its earnings results on Wednesday, November 2nd. The real estate investment trust reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.03. The company earned $474.94 million during the quarter, compared to analyst estimates of $470.39 million. Corrections Corp. of America had a return on equity of 14.55% and a net margin of 11.34%. Corrections Corp. of America’s quarterly revenue was up 3.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.64 earnings per share. Equities research analysts expect that Corrections Corp. of America will post $2.60 earnings per share for the current year.
About Corrections Corp. of America
Corrections Corporation of America is a real estate investment trust (REIT). The Company is engaged in owning, operating and managing prisons and other correctional facilities, and providing residential, community re-entry, and prisoner transportation services for governmental agencies. The Company’s facilities offer a range of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment.
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