President & CEO Of CoreCivic Sold $399K In Stock

A substantial insider sell was reported on August 14, by Damon Hininger, President & CEO at CoreCivic CXW, based on the recent SEC filing.

What Happened: After conducting a thorough analysis, Hininger sold 31,996 shares of CoreCivic. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $399,950.

Monitoring the market, CoreCivic's shares up by 0.54% at $12.96 during Thursday's morning.

Get to Know CoreCivic Better

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.

Breaking Down CoreCivic's Financial Performance

Revenue Growth: CoreCivic displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 5.7%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 23.34%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): CoreCivic's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.17.

Debt Management: With a below-average debt-to-equity ratio of 0.7, CoreCivic adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 21.48 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 0.75 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): The company's EV/EBITDA ratio 8.13 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.