Today: Corrections Corp. of America (CXW) Downgraded by Zacks Investment Research

Today: Corrections Corp. of America (CXW) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Corrections Corp. of America (NYSE:CXW) from a hold rating to a strong sell rating in a research report released on Tuesday.

According to Zacks, “Corrections Corporation of America is a real estate investment trust. It owns, operates and manages correctional, detention facilities and prisons primarily in the United States. In addition to providing the fundamental residential services relating to inmates, the company also offers rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. Corrections Corporation of America is based in Nashville, Tennessee. “

Several other research firms have also commented on CXW. Wells Fargo & Co. restated a neutral rating on shares of Corrections Corp. of America in a research report on Sunday, August 21st. Canaccord Genuity reiterated a hold rating on shares of Corrections Corp. of America in a research report on Tuesday, July 12th. SunTrust Banks Inc. decreased their target price on Corrections Corp. of America from $34.00 to $20.00 and set a neutral rating on the stock in a research report on Thursday, September 1st. Finally, TheStreet lowered Corrections Corp. of America from a buy rating to a hold rating in a research report on Friday, August 12th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $26.00.

Corrections Corp. of America (NYSE:CXW) opened at 14.22 on Tuesday. The firm’s 50-day moving average is $15.22 and its 200 day moving average is $27.42. Corrections Corp. of America has a 1-year low of $13.04 and a 1-year high of $35.05. The stock has a market capitalization of $1.67 billion, a price-to-earnings ratio of 8.27 and a beta of 0.64.

Corrections Corp. of America (NYSE:CXW) last released its quarterly earnings data on Wednesday, August 3rd. The real estate investment trust reported $0.69 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.65 by $0.04. Corrections Corp. of America had a return on equity of 14.16% and a net margin of 11.17%. The business had revenue of $463.30 million for the quarter, compared to analyst estimates of $462.68 million. During the same quarter in the prior year, the firm posted $0.73 EPS. The business’s quarterly revenue was up .9% compared to the same quarter last year. Equities analysts anticipate that Corrections Corp. of America will post $2.66 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 17th. Stockholders of record on Monday, October 3rd will be given a dividend of $0.54 per share. The ex-dividend date is Thursday, September 29th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 15.19%. Corrections Corp. of America’s dividend payout ratio (DPR) is 125.58%.

In other news, Director Mark A. Emkes acquired 10,000 shares of Corrections Corp. of America stock in a transaction that occurred on Thursday, August 18th. The stock was purchased at an average cost of $17.19 per share, with a total value of $171,900.00. Following the purchase, the director now owns 20,755 shares in the company, valued at $356,778.45. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Damon T. Hininger acquired 2,870 shares of Corrections Corp. of America stock in a transaction that occurred on Thursday, August 18th. The stock was purchased at an average cost of $16.60 per share, with a total value of $47,642.00. Following the completion of the purchase, the chief executive officer now owns 200,331 shares in the company, valued at approximately $3,325,494.60. The disclosure for this purchase can be found here. Insiders own 1.80% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Synovus Financial Corp increased its position in Corrections Corp. of America by 0.5% in the second quarter. Synovus Financial Corp now owns 7,451 shares of the real estate investment trust’s stock valued at $263,000 after buying an additional 36 shares in the last quarter. Northwestern Mutual Investment Management Company LLC increased its position in Corrections Corp. of America by 0.3% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 20,281 shares of the real estate investment trust’s stock valued at $710,000 after buying an additional 54 shares in the last quarter. Dimensional Fund Advisors LP increased its position in Corrections Corp. of America by 0.6% in the second quarter. Dimensional Fund Advisors LP now owns 15,442 shares of the real estate investment trust’s stock valued at $540,000 after buying an additional 89 shares in the last quarter. BlackRock Japan Co. Ltd increased its position in Corrections Corp. of America by 1.6% in the first quarter. BlackRock Japan Co. Ltd now owns 6,259 shares of the real estate investment trust’s stock valued at $201,000 after buying an additional 99 shares in the last quarter. Finally, Steinberg Global Asset Management increased its position in Corrections Corp. of America by 0.7% in the second quarter. Steinberg Global Asset Management now owns 19,557 shares of the real estate investment trust’s stock valued at $685,000 after buying an additional 145 shares in the last quarter. 90.89% of the stock is owned by hedge funds and other institutional investors.

Corrections Corp. of America Company Profile

Corrections Corporation of America is a real estate investment trust (REIT). The Company is engaged in owning, operating and managing prisons and other correctional facilities, and providing residential, community re-entry, and prisoner transportation services for governmental agencies. The Company’s facilities offer a range of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment.

Related posts

Leave a Comment