The GEO Group Inc. [NYSE: GEO] stock went on a downward path that fall over -13.99% on Thursday, amounting to a one-week price decrease of less than -15.56%. The company report on February 18, 2021 that The GEO Group, Inc. Announces Offering of Exchangeable Senior Notes Due 2026 by Its Subsidiary, GEO Corrections Holdings, Inc.
The GEO Group, Inc. (NYSE: GEO) (“GEO”) announced that its subsidiary, GEO Corrections Holdings, Inc. (“GEOCH”), intends, subject to market and other customary conditions, to offer $200,000,000 aggregate principal amount of exchangeable senior unsecured notes due 2026 (the “notes”) in a private offering. GEOCH also expects to grant the initial purchasers of the notes a 13-day option to purchase up to an additional $30,000,000 aggregate principal amount of the notes solely to cover over-allotments, if any. The notes will be guaranteed by GEO and GEO’s domestic subsidiaries that are guarantors under its senior credit facility and outstanding senior notes. GEO intends to use the net proceeds to fund the repurchase, redemption or other discharge of its 5.875% senior unsecured notes due 2022, to pay related transaction fees and expenses, and for general corporate purposes.
The notes will be offered in the United States only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act.
Over the last 12 months, GEO stock dropped by -56.41%. The average equity rating for GEO stock is currently 2.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $892.24 million, with 119.83 million shares outstanding and 117.22 million shares in the current float. Compared to the average trading volume of 3.69M shares, GEO stock reached a trading volume of 19224446 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on The GEO Group Inc. [GEO]:
Noble Capital Markets have made an estimate for The GEO Group Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 29, 2020. The new note on the price target was released on February 15, 2019, representing the official price target for The GEO Group Inc. stock. Previously, the target price had yet another raise to $35, while JP Morgan analysts kept a Overweight rating on GEO stock. On March 08, 2017, analysts decreased their price target for GEO shares from 52 to 50.
The Average True Range (ATR) for The GEO Group Inc. is set at 0.53, with the Price to Sales ratio for GEO stock in the period of the last 12 months amounting to 0.37. The Price to Book ratio for the last quarter was 0.95, with the Price to Cash per share for the same quarter was set at 0.44. Price to Free Cash Flow for GEO in the course of the last twelve months was 29.06 with Quick ratio for the last quarter at 1.20.
GEO Stock Performance Analysis:
The GEO Group Inc. [GEO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -15.56. With this latest performance, GEO shares dropped by -18.72% in over the last four-week period, additionally sinking by -32.54% over the last 6 months – not to mention a drop of -56.41% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GEO stock in for the last two-week period is set at 31.60, with the RSI for the last a single of trading hit 24.61, and the three-weeks RSI is set at 35.54 for The GEO Group Inc. [GEO]. The present Moving Average for the last 50 days of trading for this stock 8.85, while it was recorded at 8.44 for the last single week of trading, and 10.43 for the last 200 days.
Insight into The GEO Group Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and The GEO Group Inc. [GEO] shares currently have an operating margin of +6.03 and a Gross Margin at +19.63. The GEO Group Inc.’s Net Margin is presently recorded at +6.72.
Return on Total Capital for GEO is now 3.90, given the latest momentum, and Return on Invested Capital for the company is 4.58. Return on Equity for this stock inclined to 16.36, with Return on Assets sitting at 3.89. When it comes to the capital structure of this company, The GEO Group Inc. [GEO] has a Total Debt to Total Equity ratio set at 287.73. Additionally, GEO Total Debt to Total Capital is recorded at 74.21, with Total Debt to Total Assets ending up at 66.43. Long-Term Debt to Equity for the company is recorded at 282.67, with the Long-Term Debt to Total Capital now at 72.90.
Reflecting on the efficiency of the workforce at the company, The GEO Group Inc. [GEO] managed to generate an average of $7,573 per employee. Receivables Turnover for the company is 3.03 with a Total Asset Turnover recorded at a value of 0.58.The GEO Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.
GEO Stock EPS
With the latest financial reports released by the company, The GEO Group Inc. posted 0.34/share EPS, while the average EPS was predicted by analysts to be reported at 0.3/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 13.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GEO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for The GEO Group Inc. go to 15.00%.
The GEO Group Inc. [GEO] Insider Position Details
There are presently around $651 million, or 69.10% of GEO stock, in the hands of institutional investors. The top three institutional holders of GEO stocks are: VANGUARD GROUP INC with ownership of 20,274,759, which is approximately 7.572% of the company’s market cap and around 3.38% of the total institutional ownership; BLACKROCK INC., holding 17,846,900 shares of the stock with an approximate value of $131.71 million in GEO stocks shares; and PRUDENTIAL FINANCIAL INC, currently with $32.88 million in GEO stock with ownership of nearly 19.988% of the company’s market capitalization.
Positions in The GEO Group Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 126 institutional holders increased their position in The GEO Group Inc. [NYSE:GEO] by around 16,363,129 shares. Additionally, 105 investors decreased positions by around 6,648,400 shares, while 34 investors held positions by with 65,187,857 shares. The mentioned changes placed institutional holdings at 88,199,386 shares, according to the latest SEC report filing. GEO stock had 44 new institutional investments in for a total of 1,709,248 shares, while 43 institutional investors sold positions of 2,774,275 shares during the same period.