Geo Group (NYSE:GEO) Shares Climb 3% – Here’s What Happened

Shares of Geo Group Inc (The) (NYSE:GEO) were up 3% during mid-day trading on Wednesday. The stock traded as high as $30.70 and last traded at $30.8350. Approximately 454,953 shares were traded during trading, a decline of 79% from the average session volume of 2,185,385 shares. The stock had previously closed at $29.94.

Trending Headlines about Geo Group

Here are the key news stories impacting Geo Group this week:

• Positive Sentiment: Sidoti raised its earnings outlook: The firm increased its FY2026 EPS forecast to $1.37 from $1.30, FY2027 EPS to $1.86 from $1.67, Q1 2027 EPS to $0.40 from $0.34, Q2 2027 EPS to $0.47 from $0.42, Q3 2027 EPS to $0.49 from $0.44 and Q4 2027 EPS to $0.51 from $0.47. Sidoti projects FY2028 EPS of $1.98, indicating expectations for continued earnings growth.
• Positive Sentiment: Broker ratings remain supportive: JonesTrading assigned GEO a Buy rating, while Northland Securities maintained an Outperform rating and a $40 price target. Northland expects FY2027 EPS of $1.54, below Sidoti’s estimate but still reflecting anticipated profitability.
• Positive Sentiment: Debt-management actions may improve financial flexibility: GEO amended and restated its credit agreement while maintaining a $550 million facility. The company also announced plans to redeem all senior secured notes due in 2029 and amended and extended its revolving credit facility, developments that could reduce refinancing risk and provide greater shareholder flexibility. Geo Group Enhances Credit Facility and Shareholder Flexibility
• Neutral Sentiment: Valuation and execution remain key considerations: GEO is trading near its 52-week high, so investors may demand evidence that the higher earnings forecasts are achievable. The company’s debt levels also remain an important factor despite the recent refinancing actions.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Wall Street Zen lowered Geo Group from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. JonesTrading reaffirmed a “buy” rating and set a $40.00 price objective on shares of Geo Group in a report on Tuesday. Northland Securities increased their target price on shares of Geo Group from $30.00 to $40.00 and gave the stock an “outperform” rating in a research report on Friday, June 26th. Noble Financial reiterated an “outperform” rating on shares of Geo Group in a research note on Monday, August 10th. Finally, Zacks Research upgraded shares of Geo Group from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, Geo Group has an average rating of “Buy” and a consensus target price of $40.00.

Geo Group Stock Up 1.5%

The stock has a market capitalization of $4.08 billion, a P/E ratio of 14.62, a price-to-earnings-growth ratio of 1.67 and a beta of 0.77. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.65 and a quick ratio of 1.65. The stock has a fifty day moving average price of $31.26 and a 200 day moving average price of $26.66.

Geo Group (NYSE:GEO) last released its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.08. The company had revenue of $732.07 million for the quarter, compared to analyst estimates of $721.43 million. Geo Group had a return on equity of 10.42% and a net margin of 10.31%.The firm’s revenue for the quarter was up 15.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.22 EPS. On average, research analysts forecast that Geo Group Inc will post 1.31 earnings per share for the current year.

Insider Activity

In related news, insider Ronald A. Brack sold 7,000 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $32.00, for a total transaction of $224,000.00. Following the sale, the insider owned 71,614 shares of the company’s stock, valued at approximately $2,291,648. This represents a 8.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Matthew Albence sold 11,797 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $31.45, for a total transaction of $371,015.65. Following the completion of the sale, the vice president owned 87,602 shares in the company, valued at $2,755,082.90. This represents a 11.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 28,797 shares of company stock worth $911,916. Company insiders own 4.98% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of GEO. GAMMA Investing LLC lifted its stake in Geo Group by 6.6% during the third quarter. GAMMA Investing LLC now owns 10,098 shares of the real estate investment trust’s stock worth $308,000 after purchasing an additional 629 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in shares of Geo Group by 22.7% during the 1st quarter. Public Employees Retirement System of Ohio now owns 3,866 shares of the real estate investment trust’s stock valued at $65,000 after purchasing an additional 715 shares during the last quarter. Kestra Advisory Services LLC raised its holdings in shares of Geo Group by 2.4% during the 1st quarter. Kestra Advisory Services LLC now owns 30,462 shares of the real estate investment trust’s stock valued at $512,000 after buying an additional 727 shares in the last quarter. Bessemer Group Inc. raised its holdings in shares of Geo Group by 111.9% during the 1st quarter. Bessemer Group Inc. now owns 1,723 shares of the real estate investment trust’s stock valued at $29,000 after buying an additional 910 shares in the last quarter. Finally, Handelsbanken Fonder AB lifted its position in Geo Group by 3.0% in the 2nd quarter. Handelsbanken Fonder AB now owns 34,600 shares of the real estate investment trust’s stock worth $1,022,000 after buying an additional 1,000 shares during the last quarter. 76.10% of the stock is owned by institutional investors.

Geo Group Company Profile

The GEO Group, Inc (NYSE: GEO) is a provider of correctional, detention and community-reentry services. The company designs, finances, develops and manages secure facilities for federal, state and local government agencies, as well as certain international government clients. Its facilities house individuals in pretrial detention, immigration detention and correctional programs.

GEO also provides correctional and behavioral healthcare, transportation and security services, and electronic monitoring technologies.