CoreCivic EVP & Chief Financial Officer Sold $456K In Company Stock

DAVID GARFINKLE, EVP & Chief Financial Officer at CoreCivic CXW, disclosed an insider sell on May 22, according to a recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that GARFINKLE sold 30,000 shares of CoreCivic. The total transaction amounted to $456,915.

CoreCivic shares are trading down 0.38% at $15.58 at the time of this writing on Thursday morning.

About CoreCivic

CoreCivic Inc is an owner and operator of private prisons and detention centers in the United States. It operates in three segments: Safety, Community, and Properties. The Community segment owns and operates residential reentry centers. The Properties segment owns properties for lease to third parties and government agencies. The vast majority of the company's revenue comes from the CoreCivic Safety segment which consists of correctional and detention facilities that are owned, or controlled via a long-term lease, and managed by the company, as well as those correctional and detention facilities owned by third parties but managed by CoreCivic.

CoreCivic's Economic Impact: An Analysis

Revenue Growth: Over the 3 months period, CoreCivic showcased positive performance, achieving a revenue growth rate of 9.32% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 24.48%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): CoreCivic's EPS is below the industry average. The company faced challenges with a current EPS of 0.08. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.76.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 27.93 is lower than the industry average, implying a discounted valuation for CoreCivic's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.92 is lower than the industry average, implying a discounted valuation for CoreCivic's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 9.56, CoreCivic presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Unlocking the Meaning of Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of CoreCivic's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.