The GEO Group (NYSE:GEO) Shares Gap Down on Disappointing Earnings

The GEO Group, Inc. (NYSE:GEO - Get Free Report) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $25.78, but opened at $24.22. The GEO Group shares last traded at $24.72, with a volume of 471,475 shares.

The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.21 by ($0.08). The GEO Group had a return on equity of 9.20% and a net margin of 2.00%. The business had revenue of $607.72 million during the quarter, compared to analyst estimates of $607.45 million.

Analysts Set New Price Targets

A number of equities analysts have issued reports on GEO shares. Noble Financial cut shares of The GEO Group from an "outperform" rating to a "market perform" rating in a report on Monday, November 11th. Northland Securities lifted their price objective on shares of The GEO Group from $16.00 to $37.00 and gave the company an "outperform" rating in a research note on Friday, November 8th. Finally, Wedbush reiterated an "outperform" rating on shares of The GEO Group in a research report on Tuesday, December 17th.

Institutional Investors Weigh In On The GEO Group

Several large investors have recently modified their holdings of the stock. SRS Capital Advisors Inc. boosted its position in shares of The GEO Group by 160.0% in the 4th quarter. SRS Capital Advisors Inc. now owns 1,170 shares of the real estate investment trust's stock valued at $33,000 after purchasing an additional 720 shares during the period. Smartleaf Asset Management LLC lifted its stake in The GEO Group by 149.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,527 shares of the real estate investment trust's stock valued at $42,000 after buying an additional 915 shares in the last quarter. Creative Planning boosted its holdings in shares of The GEO Group by 9.0% in the third quarter. Creative Planning now owns 11,096 shares of the real estate investment trust's stock worth $143,000 after buying an additional 919 shares during the period. NewEdge Advisors LLC purchased a new position in shares of The GEO Group in the fourth quarter worth approximately $29,000. Finally, Tyler Stone Wealth Management lifted its position in shares of The GEO Group by 8.4% in the 4th quarter. Tyler Stone Wealth Management now owns 13,314 shares of the real estate investment trust's stock valued at $373,000 after acquiring an additional 1,030 shares in the last quarter. 76.10% of the stock is owned by institutional investors.

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The GEO Group Price Performance

The company has a market cap of $3.66 billion, a PE ratio of 90.38, a price-to-earnings-growth ratio of 2.11 and a beta of 0.87. The stock has a fifty day moving average price of $29.42 and a 200-day moving average price of $22.43. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.10 and a quick ratio of 1.10.

About The GEO Group

The GEO Group, Inc NYSE: GEO engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects.