Todays Report: The Corrections Corp. of America (CXW) Rating Increased to Buy at SunTrust Banks Inc.

The Corrections Corp. of America (CXW) Rating Increased to Buy at SunTrust Banks Inc.

SunTrust Banks Inc. upgraded shares of Corrections Corp. of America (NYSE:CXW) from a neutral rating to a buy rating in a report published on Wednesday morning. The brokerage currently has $20.00 price objective on the real estate investment trust’s stock.

Several other research analysts have also commented on the company. Zacks Investment Research lowered Corrections Corp. of America from a hold rating to a strong sell rating in a report on Tuesday, October 11th. Canaccord Genuity restated a hold rating and issued a $21.00 price objective on shares of Corrections Corp. of America in a report on Tuesday, September 27th. Wells Fargo & Co. restated a neutral rating on shares of Corrections Corp. of America in a report on Sunday, August 21st. Finally, TheStreet lowered shares of Corrections Corp. of America from a buy rating to a hold rating in a report on Friday, August 12th. One analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average price target of $26.00.

Shares of Corrections Corp. of America (NYSE:CXW) opened at 14.35 on Wednesday. The firm’s 50 day moving average is $15.13 and its 200 day moving average is $27.22. The stock has a market capitalization of $1.69 billion, a price-to-earnings ratio of 8.34 and a beta of 0.64. Corrections Corp. of America has a 52-week low of $13.04 and a 52-week high of $35.05.

Corrections Corp. of America (NYSE:CXW) last posted its quarterly earnings results on Wednesday, August 3rd. The real estate investment trust reported $0.69 EPS for the quarter, topping the 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 previous year, the firm earned $0.73 EPS. The company’s quarterly revenue was up .9% compared to the same quarter last year. Equities analysts expect that Corrections Corp. of America will post $2.66 earnings per share for the current year.

The company also recently announced a quarterly dividend, which was paid on Monday, October 17th. Shareholders of record on Monday, October 3rd were given a $0.54 dividend. This represents a $2.16 annualized dividend and a yield of 15.05%. The ex-dividend date of this dividend was Thursday, September 29th. Corrections Corp. of America’s dividend payout ratio is currently 125.58%.

In other news, CEO Damon T. Hininger bought 2,870 shares of the company’s stock in a transaction on Thursday, August 18th. The stock was bought at an average cost of $16.60 per share, with a total value of $47,642.00. Following the transaction, the chief executive officer now directly owns 200,331 shares in the company, valued at approximately $3,325,494.60. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Charles L. Overby bought 5,000 shares of the company’s stock in a transaction on Friday, August 19th. The stock was purchased at an average cost of $19.85 per share, with a total value of $99,250.00. Following the completion of the transaction, the director now owns 33,788 shares in the company, valued at $670,691.80. The disclosure for this purchase can be found here. 1.80% of the stock is owned by company insiders.

A number of institutional investors have recently added to or reduced their stakes in CXW. Creative Planning increased its position in Corrections Corp. of America by 416.7% in the second quarter. Creative Planning now owns 3,100 shares of the real estate investment trust’s stock valued at $109,000 after buying an additional 2,500 shares in the last quarter. Hillsdale Investment Management Inc. purchased a new position in Corrections Corp. of America during the second quarter valued at $123,000. Advisor Group Inc. purchased a new position in Corrections Corp. of America during the second quarter valued at $138,000. Daiwa Securities Group Inc. increased its position in Corrections Corp. of America by 4.8% in the second quarter. Daiwa Securities Group Inc. now owns 4,335 shares of the real estate investment trust’s stock valued at $152,000 after buying an additional 200 shares in the last quarter. Finally, IFP Advisors Inc increased its position in Corrections Corp. of America by 38.3% in the first quarter. IFP Advisors Inc now owns 4,732 shares of the real estate investment trust’s stock valued at $152,000 after buying an additional 1,310 shares in the last quarter. 90.89% of the stock is owned by institutional investors.

Corrections Corp. of America Company Profile

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