Corrections Corp. of America (CXW) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Corrections Corp. of America (NYSE:CXW) from a buy rating to a hold rating in a research note published on Tuesday.

According to Zacks, “CoreCivic, Inc. is a real estate investment trust which provides correctional, detention and residential reentry facilities. It designs, constructs, owns, manages and renovates jails, prisons, government agencies and inmate transportation companies. CoreCivic, Inc., formerly known as Corrections Corporation of America, is based in Nashville, Tennessee. “

Several other research firms also recently commented on CXW. Deutsche Bank AG dropped their price target on shares of Corrections Corp. of America from $40.00 to $35.00 and set a buy rating for the company in a research note on Tuesday, August 8th. Canaccord Genuity set a $36.00 price target on shares of Corrections Corp. of America and gave the stock a buy rating in a research note on Monday, August 7th. ValuEngine downgraded shares of Corrections Corp. of America from a strong-buy rating to a buy rating in a research note on Friday, September 1st. TheStreet downgraded shares of Corrections Corp. of America from a b- rating to a c+ rating in a research note on Monday, August 21st. Finally, BidaskClub downgraded shares of Corrections Corp. of America from a hold rating to a sell rating in a research note on Wednesday, June 21st. One analyst has rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average price target of $30.00.

Corrections Corp. of America (NYSE:CXW) opened at 26.09 on Tuesday. The company has a market cap of $3.08 billion, a PE ratio of 14.52 and a beta of 0.92. The company has a 50-day moving average price of $26.01 and a 200 day moving average price of $29.72. Corrections Corp. of America has a 52 week low of $12.99 and a 52 week high of $35.33.

Corrections Corp. of America (NYSE:CXW) last posted its earnings results on Monday, August 7th. The real estate investment trust reported $0.59 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.36 by $0.23. Corrections Corp. of America had a net margin of 11.62% and a return on equity of 14.54%. The firm had revenue of $436.39 million during the quarter, compared to the consensus estimate of $437.92 million. During the same quarter last year, the firm earned $0.49 EPS. The firm’s revenue for the quarter was down 5.8% on a year-over-year basis. On average, equities research analysts forecast that Corrections Corp. of America will post $1.52 EPS for the current fiscal year.

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The firm also recently declared a quarterly dividend, which will be paid on Monday, October 16th. Shareholders of record on Monday, October 2nd will be paid a $0.42 dividend. The ex-dividend date is Friday, September 29th. This represents a $1.68 annualized dividend and a dividend yield of 6.44%. Corrections Corp. of America’s dividend payout ratio (DPR) is 93.86%.

In related news, EVP Kim White sold 5,000 shares of the business’s stock in a transaction on Monday, August 14th. The shares were sold at an average price of $26.27, for a total transaction of $131,350.00. Following the completion of the transaction, the executive vice president now owns 22,393 shares in the company, valued at $588,264.11. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 1.30% of the company’s stock.

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its stake in shares of Corrections Corp. of America by 2.4% during the second quarter. Vanguard Group Inc. now owns 19,273,935 shares of the real estate investment trust’s stock worth $531,576,000 after purchasing an additional 459,903 shares in the last quarter. BlackRock Inc. grew its stake in shares of Corrections Corp. of America by 13,997.1% during the first quarter. BlackRock Inc. now owns 10,765,267 shares of the real estate investment trust’s stock worth $338,241,000 after purchasing an additional 10,688,902 shares in the last quarter. FMR LLC grew its stake in shares of Corrections Corp. of America by 108.8% during the first quarter. FMR LLC now owns 7,127,278 shares of the real estate investment trust’s stock worth $223,939,000 after purchasing an additional 3,713,585 shares in the last quarter. Daiwa Securities Group Inc. grew its stake in shares of Corrections Corp. of America by 43.4% during the second quarter. Daiwa Securities Group Inc. now owns 3,865,032 shares of the real estate investment trust’s stock worth $106,598,000 after purchasing an additional 1,170,205 shares in the last quarter. Finally, State Street Corp acquired a new position in shares of Corrections Corp. of America during the first quarter worth $100,342,000. Hedge funds and other institutional investors own 86.18% of the company’s stock.

Corrections Corp. of America Company Profile

CoreCivic, Inc, formerly Corrections Corporation of America, is a diversified government solutions company. The Company provides partnership correctional, detention and residential reentry facilities and operates prison in the United States. The Company’s business offerings include CoreCivic Safety, CoreCivic Properties, and CoreCivic Community.

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