Traders Buy Shares of Corrections Corp. of America (CXW) on Weakness
Investors purchased shares of Corrections Corp. of America (NYSE:CXW) on weakness during trading on Friday. $8.05 million flowed into the stock on the tick-up and $6.20 million flowed out of the stock on the tick-down, for a money net flow of $1.85 million into the stock. Of all stocks tracked, Corrections Corp. of America had the 20th highest net in-flow for the day. Corrections Corp. of America traded down ($0.08) for the day and closed at $32.42
CXW has been the topic of a number of research reports. Zacks Investment Research upgraded shares of Corrections Corp. of America from a “hold” rating to a “buy” rating and set a $35.00 target price on the stock in a research report on Tuesday, May 3rd. Canaccord Genuity increased their price target on shares of Corrections Corp. of America from $30.00 to $33.00 and gave the company a “hold” rating in a research report on Tuesday, March 22nd. Finally, SunTrust Banks Inc. downgraded shares of Corrections Corp. of America from a “buy” rating to a “neutral” rating and cut their price target for the company from $37.00 to $34.00 in a research report on Friday, July 1st.
The stock has a market cap of $3.81 billion and a price-to-earnings ratio of 18.21. The firm’s 50 day moving average price is $33.85 and its 200 day moving average price is $30.90.
Corrections Corp. of America (NYSE:CXW) last released its earnings results on Wednesday, May 4th. The real estate investment trust reported $0.61 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.58 by $0.03. The business earned $447.40 million during the quarter, compared to the consensus estimate of $443.47 million. The business’s revenue was up 5.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.68 EPS. Analysts predict that Corrections Corp. of America will post $2.63 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, July 15th. Shareholders of record on Wednesday, June 1st will be given a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a yield of 6.66%. The ex-dividend date of this dividend is Wednesday, June 29th.
Other hedge funds and institutional investors have added to or reduced their stakes in the company. NorthCoast Asset Management LLC acquired a new position in Corrections Corp. of America during the fourth quarter worth about $3,805,000. Shell Asset Management Co. boosted its position in Corrections Corp. of America by 47.5% in the fourth quarter. Shell Asset Management Co. now owns 62,810 shares of the real estate investment trust’s stock worth $1,664,000 after buying an additional 20,220 shares in the last quarter. ProShare Advisors LLC boosted its position in Corrections Corp. of America by 12.5% in the fourth quarter. ProShare Advisors LLC now owns 53,159 shares of the real estate investment trust’s stock worth $1,408,000 after buying an additional 5,893 shares in the last quarter. California Public Employees Retirement System boosted its position in Corrections Corp. of America by 9.8% in the fourth quarter. California Public Employees Retirement System now owns 426,400 shares of the real estate investment trust’s stock worth $11,295,000 after buying an additional 38,000 shares in the last quarter. Finally, TD Asset Management Inc. boosted its position in Corrections Corp. of America by 6.8% in the fourth quarter. TD Asset Management Inc. now owns 420,101 shares of the real estate investment trust’s stock worth $11,128,000 after buying an additional 26,581 shares in the last quarter.
Corrections Corporation of America (CCA) 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. In addition to providing fundamental residential services, the Company’s facilities offer a variety of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment.
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