CoreCivic Recent Insider Activity

Anthony Grande, EVP at CoreCivic CXW, disclosed an insider sell on August 15, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Grande executed a sale of 15,000 shares of CoreCivic with a total value of $192,450.

Tracking the Friday's morning session, CoreCivic shares are trading at $12.78, showing a down of 0.0%.

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: CoreCivic's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 5.7%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 23.34%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): With an EPS below industry norms, CoreCivic exhibits below-average bottom-line performance with a current EPS of 0.17.

Debt Management: CoreCivic's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.7.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 21.3 is lower than the industry average, implying a discounted valuation for CoreCivic's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.74, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 8.09, CoreCivic presents an attractive value opportunity.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Understanding Crucial Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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 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.