The GEO Group (NYSE:GEO) Cut to Strong Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of The GEO Group (NYSE:GEO) from a hold rating to a strong sell rating in a research report report published on Wednesday morning, Zacks.com reports.

According to Zacks, “The GEO Group, Inc. is an equity real estate investment trust. It specializes in the design, development, financing and operation of correctional, detention and community reentry facilities. It has operations in the United States, Australia, South Africa, and the United Kingdom. The GEO Group, Inc. is headquartered in Boca Raton, Florida. “

GEO stock opened at $7.87 on Wednesday. The firm has a 50 day moving average price of $8.10 and a 200-day moving average price of $7.76. The GEO Group has a 52-week low of $4.96 and a 52-week high of $11.00. The firm has a market capitalization of $964.39 million, a price-to-earnings ratio of 7.64, a PEG ratio of 0.36 and a beta of 0.67. The company has a debt-to-equity ratio of 2.88, a quick ratio of 2.22 and a current ratio of 2.22.

The GEO Group (NYSE:GEO) last released its earnings results on Thursday, November 4th. The real estate investment trust reported $0.36 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.64 by ($0.28). The GEO Group had a net margin of 6.11% and a return on equity of 16.58%. The business had revenue of $557.28 million for the quarter, compared to analysts’ expectations of $551.53 million. During the same quarter in the previous year, the business posted $0.67 earnings per share. The GEO Group’s revenue for the quarter was down 3.8% on a year-over-year basis. As a group, sell-side analysts forecast that The GEO Group will post 2.54 earnings per share for the current fiscal year.

Hedge funds have recently added to or reduced their stakes in the company. FMR LLC raised its holdings in The GEO Group by 220,585,000.0% in the 2nd quarter. FMR LLC now owns 2,205,851 shares of the real estate investment trust’s stock worth $15,705,000 after acquiring an additional 2,205,850 shares during the last quarter. Credit Suisse AG raised its holdings in The GEO Group by 107.5% in the 2nd quarter. Credit Suisse AG now owns 113,983 shares of the real estate investment trust’s stock worth $787,000 after acquiring an additional 1,634,987 shares during the last quarter. Mason Capital Management LLC raised its holdings in The GEO Group by 76.9% in the 2nd quarter. Mason Capital Management LLC now owns 2,000,000 shares of the real estate investment trust’s stock worth $14,240,000 after acquiring an additional 869,441 shares during the last quarter. Two Sigma Advisers LP raised its holdings in The GEO Group by 60.5% in the 3rd quarter. Two Sigma Advisers LP now owns 2,219,249 shares of the real estate investment trust’s stock worth $16,578,000 after acquiring an additional 836,700 shares during the last quarter. Finally, Principal Financial Group Inc. raised its holdings in The GEO Group by 98.4% in the 2nd quarter. Principal Financial Group Inc. now owns 1,678,522 shares of the real estate investment trust’s stock worth $11,951,000 after acquiring an additional 832,618 shares during the last quarter. Hedge funds and other institutional investors own 80.42% of the company’s stock.

About The GEO Group

The GEO Group, Inc is a real estate investment trust, which specializes in the ownership, lease, and management of correctional, detention, and re-entry facilities. It operates through the following segments: U.S. Secure Services; GEO Care; International Services; and Facility Construction and Design.

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