CoreCivic chief development officer sells $576,680 in stock

BRENTWOOD, Tenn.—CoreCivic, Inc. (NYSE:CXW) reported that Anthony L. Grande, the company's Executive Vice President and Chief Development Officer, sold 26,000 shares of common stock on November 26, according to a recent SEC filing. The shares were sold at an average price of $22.18, totaling approximately $576,680. Following this transaction, Grande holds 127,380 shares directly.

The transaction was executed in multiple trades, with prices ranging from $22.10 to $22.25. The weighted average sale price was reported as $22.18.

In other recent news, CoreCivic has demonstrated significant growth in its third-quarter results for 2024, surpassing expectations with a 2% revenue increase, reaching $491.6 million. The company attributes this to state revenue growth and improved occupancy rates. CoreCivic's normalized funds from operations (FFO) per share also saw a significant rise of 23% to $0.43. Analysts at Jones Trading have upgraded CoreCivic's stock from Hold to Buy, reflecting anticipated growth opportunities, especially with the upcoming political shift and focus on immigration and criminal justice enforcement.

CoreCivic's improved third-quarter performance was further boosted by an occupancy rate of 75.2%, contributing to a 25% increase in net operating income for the Safety segment. Despite a decline in the Community segment due to a legal settlement, the company is preparing to activate 18,000 vacant beds in response to an anticipated increase in demand.

Based on these recent developments, CoreCivic has updated its 2024 financial guidance, expecting an adjusted EPS between $0.69 and $0.75 and normalized FFO per share between $1.59 and $1.65. The company also repurchased 4 million shares and maintains a total liquidity of $365 million, with no debt maturities until 2027. This news underscores CoreCivic's financial resilience and proactive strategic planning to meet market demands.

InvestingPro Insights

CoreCivic's recent stock performance has been noteworthy, with InvestingPro data showing a robust 60.26% price return over the past month and an impressive 61.44% over the last three months. This strong momentum aligns with the insider selling activity reported in the article, potentially indicating that executives may be capitalizing on the stock's recent gains.

InvestingPro Tips highlight that CoreCivic has a perfect Piotroski Score of 9, suggesting strong financial health. Additionally, five analysts have revised their earnings upwards for the upcoming period, which could be a positive signal for investors. However, the stock's RSI suggests it may be in overbought territory, which investors should consider in light of the recent insider sale.

The company's market capitalization stands at $2.5 billion, with a P/E ratio of 24.3 based on the last twelve months as of Q3 2024. This valuation metric, combined with the InvestingPro Tip that CoreCivic is trading at a high earnings multiple, may provide context for the executive's decision to sell shares at current price levels.

For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for CoreCivic, providing a deeper dive into the company's financial health and market position.

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