Geo Group, Inc. (NYSE: GEO)’s stock price has increased by 7.76 compared to its previous closing price of 14.05. However, the company has seen a 7.22% increase in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-03 that GEO Group saw solid results outside its electronic monitoring segment, which continues to be a drag. That said, biggest potential catalyst for GEO is its electronic monitoring segment, but budgetary issues and weak ISAP participation have hindered its growth. The stock is very cheap both versus its nearest competitor and historically.
Is It Worth Investing in Geo Group, Inc. (NYSE: GEO) Right Now?
Geo Group, Inc. (NYSE: GEO) has a price-to-earnings ratio that is above its average at 21.11x. The stock has a 36-month beta value of 0.60. Opinions on the stock are mixed, with 2 analysts rating it as a “buy,” 0 as “overweight,” 2 as “hold,” and 0 as “sell.”
The public float for GEO is 119.24M, and at present, short sellers hold a 20.64% of that float. On April 08, 2024, the average trading volume of GEO was 2.74M shares.
GEO’s Market Performance
GEO stock saw an increase of 7.22% in the past week, with a monthly gain of 26.80% and a quarterly increase of 41.10%. The volatility ratio for the week is 4.67%, and the volatility levels for the last 30 days are 3.75% for Geo Group, Inc. (GEO). The simple moving average for the past 20 days is 12.70% for GEO’s stock, with a 58.50% simple moving average for the past 200 days.
Analysts’ Opinion of GEO
Many brokerage firms have already submitted their reports for GEO stocks, with Northland Capital repeating the rating for GEO by listing it as a “Outperform.” The predicted price for GEO in the upcoming period, according to Northland Capital is $14 based on the research report published on October 02, 2023 of the previous year 2023.
Wedbush, on the other hand, stated in their research note that they expect to see GEO reach a price target of $14, previously predicting the price at $10. The rating they have provided for GEO stocks is “Outperform” according to the report published on November 29th, 2022.
Wedbush gave a rating of “Neutral” to GEO, setting the target price at $7 in the report published on June 08th of the previous year.
GEO Trading at 22.15% from the 50-Day Moving Average
After a stumble in the market that brought GEO to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 1.27% of gains for the given period.
Volatility was left at 3.75%, however, over the last 30 days, the volatility rate increased by 4.67%, as shares surge +26.38% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +28.09% upper at present.
During the last 5 trading sessions, GEO rose by +7.22%, which changed the moving average for the period of 200-days by +105.43% in comparison to the 20-day moving average, which settled at $13.59. In addition, Geo Group, Inc. saw 39.80% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GEO starting from ZOLEY GEORGE C, who purchase 50,000 shares at the price of $12.48 back on Mar 14 ’24. After this action, ZOLEY GEORGE C now owns 3,700,904 shares of Geo Group, Inc., valued at $624,025 using the latest closing price.
Black James H., the SVP & Pres, Secure Services of Geo Group, Inc., sale 5,672 shares at $11.95 during a trade that took place back on Mar 06 ’24, which means that Black James H. is holding 0 shares at $67,792 based on the most recent closing price.
Stock Fundamentals for GEO
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.24 for the gross margin
The net margin for Geo Group, Inc. stands at 0.04. The total capital return value is set at 0.11. Equity return is now at value 7.79, with 2.57 for asset returns.
Based on Geo Group, Inc. (GEO), the company’s capital structure generated 0.58 points at debt to capital in total, while cash flow to debt ratio is standing at 0.16. The debt to equity ratio resting at 1.4. The interest coverage ratio of the stock is 1.66.
Currently, EBITDA for the company is 478.17 million with net debt to EBITDA at 3.66. When we switch over and look at the enterprise to sales, we see a ratio of 1.53. The receivables turnover for the company is 6.19for trailing twelve months and the total asset turnover is 0.65.
Conclusion
To sum up, Geo Group, Inc. (GEO) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
