|Bid||7.27 x 3100|
|Ask||7.32 x 2900|
|Day's Range||7.08 - 8.00|
|52 Week Range||5.76 - 16.57|
|Beta (5Y Monthly)||1.36|
|PE Ratio (TTM)||15.96|
|Earnings Date||May 04, 2021 - May 10, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 31, 2020|
|1y Target Est||15.30|
The prison operator announced some bad news, but the real problem is the longer-term trend at which it hints.
BRENTWOOD, Tenn., Feb. 25, 2021 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (the Company) announced today that, effective March 1, 2021, it has entered into a 90-day contract extension with the United States Marshals Service ("USMS") at the Company's 2,016-bed Northeast Ohio Correctional Center. The USMS has notified the Company that it does not anticipate extending the contract following the 90-day extension. While the Company is not currently aware of alternative locations where the USMS can house the approximately 800 federal detainees currently located at the Northeast Ohio facility, President Biden recently issued an executive order directing the Department of Justice not to renew contracts with privately operated criminal detention facilities. About CoreCivic CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by U.S. government agencies. We have been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com. Forward-Looking Statements This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy (including the Department of Justice not renewing contracts with privately operated criminal detention facilities as a result of the executive order issued by President Biden on January 26, 2021), legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government, and the impact of any changes to immigration reform and sentencing laws (our company does not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (v) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, contract renegotiations or terminations, increases in costs of operations, fluctuations in interest rates and risks of operations; (vi) the duration of the federal government’s denial of entry at the United States southern border to asylum-seekers and anyone crossing the southern border without proper documentation or authority in an effort to contain the spread of COVID-19; (vii) government and staff responses to staff or residents testing positive for COVID-19 within public and private correctional, detention and reentry facilities, including the facilities we operate; (viii) the location and duration of shelter in place orders and other restrictions associated with COVID-19 that disrupt the criminal justice system, along with government policies on prosecutions and newly ordered legal restrictions that affect the number of people placed in correctional, detention, and reentry facilities; (ix) whether revoking our REIT election, effective January 1, 2021, and our revised capital allocation strategy can be implemented in a cost effective manner that provides the expected benefits, including facilitating our planned debt reduction initiative and planned return of capital to shareholders; (x) our ability to identify and consummate the sale of additional non-core assets at attractive prices; (xi) our ability to successfully identify and consummate future development and acquisition opportunities and our ability to successfully integrate the operations of our completed acquisitions and realize projected returns resulting therefrom; (xii) increases in costs to develop or expand real estate properties that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as the effects of, and delays caused by, COVID-19, weather, the availability of labor and materials, labor conditions, delays in obtaining legal approvals, unforeseen engineering, archeological or environmental problems, and cost inflation, resulting in increased construction costs; (xiii) our ability to identify and initiate service opportunities that were unavailable under our former REIT structure; (xiv) our ability to have met and maintained qualification for taxation as a REIT for the years we elected REIT status; and (xv) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission. CoreCivic takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services. Contact: Investors: Cameron Hopewell - Managing Director, Investor Relations - (615) 263-3024 Media: PublicAffairs@CoreCivic.com
We’re in a volatile period right now, as stocks slipping after starting the year on a strong note. Big Tech, which boomed during the pandemic lockdowns and the move to remote work, is leading the declines. Investors have taken the measure of the vaccination programs, and now, in fueled by both a belief and a hope that economies will soon return to a more normal footing, they are seeking out those stocks that will gain we revert to a ‘pre-corona’ market situation. There is also inflation to take into account. Oil prices are up this year, and that’s one commodity whose price fluctuations are certain to trickle down the supply chain. Along with rising consumer demand, there’s an expectation that prices are going to increase, at least in the near term. All in all, this is the moment to take the old market advice: buy low and sell high. With stock prices falling for now, and volatility up, the low is covered. The key is finding the stocks that are primed to gain when the bulls start running again. Wall Street’s analyst corps know this, and they are not shying away from recommending stocks that may have hit bottom. Using TipRanks database, we pinpointed two such stocks. Each is down significantly, but each also has enough upside potential to warrant a Buy rating. TechnipFMC Plc (FTI) We’ll start in the hydrocarbon sector, where TechnipFMC operates two divisions in the oil and gas business: subsea, and surface. The company’s projects, until recently, included oil and gas exploration and extraction, rig and platform operations, crude oil refining, petrochemical (ethylene, benzene, naphtha, hydrogen) production, and both on- and offshore liquified natural gas (LNG) plants. Earlier this month, the petrochemical and LNG operations were spun off as Technip Energy, a separate independently traded company. TechnipFMC retains the subsea and surface hydrocarbon activities, allowing the company to better focus its efforts. TechnipFMC may need that focus, as the company has had a difficult time gaining traction in the stock markets. Like most of its peers, TechnipFMC saw share value fall steeply last winter at the height of the coronavirus crisis, but since then the stock has only regained about half of the losses. Over the past 12 months, shares of FTI are down 53%. Q4 results are due out today, after market close, and should shed more light on the company’s full-year performance. The company has reported quarterly earnings in 2020 that are in-line with the previous year’s results. The second quarter showed a year-over-year loss; Q1 and Q3 both showed yoy gains. Covering FTI for JPMorgan, analyst Sean Meakim writes, “Since the spin-off of Technip Energies was placed back in motion on 1/7, after outperforming considerably in the first days, FTI shares are now down… With newfound visibility to an exit from “spin purgatory”, investors are giving FTI another look with some still taking a “wait and see” approach until post-spin... We view the completion of the spin as a re-rating opportunity… allowing for broader investor participation. Monetization of TechnipFMC’s stake in Technip Energies helps the balance sheet and provides optionality on capital allocation.” To this end, Meakim rates FTI an Overweight (i.e. Buy) and his $20 price target suggests the stock has room to more than double in the year ahead, with a 172% upside potential. (To watch Meakim’s track record, click here) Overall, there are 13 recent reviews on FTI, breaking down 8 to 5 in favor of Buy versus Hold. This makes the analyst consensus rating a Moderate Buy, and suggests that Wall Street generally sees opportunity here. Shares are priced at $7.35, and the $12.18 average price target implies a bullish upside of ~65% over the next 12 months. (See FTI stock analysis on TipRanks) CoreCivic, Inc. (CXW) Next up, CoreCivic, is a for-profit provider of detention facilities for law enforcement agencies, primarily the US government. The company owns and operates 65 prisons and detention centers with a total capacity of 90,000 inmates, located in 19 states plus DC. Effective on January 1 of this year, the company completed its switch from an REIT to a taxable C-corporation. The move was made without fanfare, and the company reported its Q4 and full-year 2020 results – which covers the preparation period for the switch – earlier this month. CXW showed a top line of $1.91 billion for the ‘corona year’ of 2020, a small drop (3%) from the $1.98 billion reported in 2019. Full-year earnings came in at 45 cents per share. During the fourth quarter, the company reported paying off some $125 million of its long-term debt; CoreCivic’s current long-term liabilities are listed as $2.3 billion. The company showed liquid assets on hand at the end of 2020 as $113 million in cash, plus $566 million in available credit. The heavy debt load may help explain the company’s share performance, even as revenues and earnings remain positive. The stock is down 50% in the past 12 months, having never really recovered from share price losses incurred in the corona panic last winter. 5-star analyst Joe Gomes, of Noble Capital, covers CoreCivic, and remains sanguine on the stock despite its apparent weaknesses. “We view the fourth quarter as continuation a trend, one across the last three quarters of 2020. In spite of COVID, the large reduction in detainees, the reduction in normal operations of the court system, and other impacts, CoreCivic posted relatively flat revenue and sequential adjusted EPS growth. We believe this illustrates the strength of the Company's operating model,” Gomes noted. In line with his optimistic approach, Gomes keeps his Outperform (i.e. Buy) rating and $15 price target as is. This target puts the upside potential at 97%. (To watch Gomes’ track record, click here) Some stocks fly under the radar, and CXW is one of those. Gomes' is the only recent analyst review of this company, and it is decidedly positive. (See CXW stock analysis on TipRanks) To find good ideas for beaten-down stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.