CoreCivic Inc. [CXW] is 14.66% higher this YTD. Is it still time to buy?

CoreCivic Inc. [NYSE: CXW] closed the trading session at $7.51 on 04/07/21. The day’s price range saw the stock hit a low of $7.41, while the highest price level was $8.88. The company report on April 8, 2021 that CoreCivic Announces Upsizing and Pricing of $450 Million 8.25% Senior Notes Due 2026.

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CoreCivic, Inc. (NYSE: CXW) (the “Company”) announced that it successfully upsized and priced its offering of $450,000,000 aggregate principal amount of 8.25% senior unsecured notes due 2026 (the “Notes”). The aggregate principal amount of the Notes to be issued in the offering was increased to $450 million from the previously announced $400 million. The Notes were priced at 99.0% of face value and thus will have an effective yield to maturity of 8.50%. The aggregate net proceeds from the sale of the Notes are expected to be approximately $435.1 million, after deducting the underwriting discounts and estimated offering expenses. CoreCivic intends to use a significant amount of the net proceeds from the offering of the Notes (i) to redeem all $250 million principal amount of its outstanding 5.00% senior notes due 2022 (the “2022 Senior Notes”), including the payment of the applicable make-whole amount and accrued interest, and (ii) to otherwise repay or reduce its other indebtedness, which may include repurchasing or redeeming a portion of its $350 million principal amount of 4.625% senior notes due 2023 (the “2023 Senior Notes”). CoreCivic may use any remaining proceeds for general corporate purposes. There can be no assurance that the offering of the Notes, the redemption of the 2022 Senior Notes, or any other debt reduction will be consummated.

Imperial Capital is acting as left lead underwriter, StoneX Financial Inc. is acting as joint bookrunner, and Wedbush Securities Inc. is acting as co-manager for the offering.

The stocks have a year to date performance of 14.66 percent and weekly performance of -17.11 percent. The stock has been moved at -6.48 percent over the last six months. The stock has performed -7.85 percent around the most recent 30 days and changed 11.59 percent over the most recent 3-months.

If compared to the average trading volume of 2.58M shares, CXW reached to a volume of 12727439 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about CoreCivic Inc. [CXW]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CXW shares is $15.30 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CXW stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Noble Capital Markets have made an estimate for CoreCivic Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 16, 2020. While these analysts kept the previous recommendation, Canaccord Genuity raised their target price from $30 to $34. The new note on the price target was released on February 10, 2017, representing the official price target for CoreCivic Inc. stock. Previously, the target price had yet another raise from $22 to $28, while Canaccord Genuity kept a Buy rating on CXW stock. On November 11, 2016, analysts increased their price target for CXW shares from 17 to 22.

The Average True Range (ATR) for CoreCivic Inc. is set at 0.50, with the Price to Sales ratio for CXW stock in the period of the last 12 months amounting to 0.49. The Price to Book ratio for the last quarter was 0.65, with the Price to Cash per share for the same quarter was set at 0.92. Price to Free Cash Flow for CXW in the course of the last twelve months was 4.17 with Quick ratio for the last quarter at 2.30.

CXW stock trade performance evaluation

CoreCivic Inc. [CXW] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -17.11. With this latest performance, CXW shares dropped by -7.85% in over the last four-week period, additionally sinking by -6.48% over the last 6 months – not to mention a drop of -21.77% 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 CXW stock in for the last two-week period is set at 36.62, with the RSI for the last a single of trading hit 27.78, and the three-weeks RSI is set at 42.12 for CoreCivic Inc. [CXW]. The present Moving Average for the last 50 days of trading for this stock 8.02, while it was recorded at 8.69 for the last single week of trading, and 8.06 for the last 200 days.

CoreCivic Inc. [CXW]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and CoreCivic Inc. [CXW] shares currently have an operating margin of +12.47 and a Gross Margin at +19.00. CoreCivic Inc.’s Net Margin is presently recorded at +2.84.

Return on Total Capital for CXW is now 6.98, given the latest momentum, and Return on Invested Capital for the company is 1.63. Return on Equity for this stock inclined to 3.91, with Return on Assets sitting at 1.44. When it comes to the capital structure of this company, CoreCivic Inc. [CXW] has a Total Debt to Total Equity ratio set at 141.35. Additionally, CXW Total Debt to Total Capital is recorded at 58.57, with Total Debt to Total Assets ending up at 52.98. Long-Term Debt to Equity for the company is recorded at 136.67, with the Long-Term Debt to Total Capital now at 56.63.

Reflecting on the efficiency of the workforce at the company, CoreCivic Inc. [CXW] managed to generate an average of $4,362 per employee. Receivables Turnover for the company is 4.37 with a Total Asset Turnover recorded at a value of 0.51.CoreCivic Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 2.30.

Earnings per share (EPS) analysis for CoreCivic Inc. [CXW] stock

With the latest financial reports released by the company, CoreCivic Inc. posted 0.27/share EPS, while the average EPS was predicted by analysts to be reported at 0.26/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 3.80%. 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 CXW. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for CoreCivic Inc. go to 6.00%.

CoreCivic Inc. [CXW]: Insider Ownership positions

There are presently around $664 million, or 74.60% of CXW stock, in the hands of institutional investors. The top three institutional holders of CXW stocks are: BLACKROCK INC. with ownership of 18,535,802, which is approximately 4.465% of the company’s market cap and around 1.90% of the total institutional ownership; VANGUARD GROUP INC, holding 13,887,378 shares of the stock with an approximate value of $104.29 million in CXW stocks shares; and STATE STREET CORP, currently with $30.03 million in CXW stock with ownership of nearly 1.332% of the company’s market capitalization.

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Positions in CoreCivic Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 111 institutional holders increased their position in CoreCivic Inc. [NYSE:CXW] by around 15,669,034 shares. Additionally, 123 investors decreased positions by around 15,076,109 shares, while 34 investors held positions by with 57,631,120 shares. The mentioned changes placed institutional holdings at 88,376,263 shares, according to the latest SEC report filing. CXW stock had 43 new institutional investments in for a total of 3,435,005 shares, while 44 institutional investors sold positions of 1,930,873 shares during the same period.

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