Insider Unloading: Anthony Grande Sells $217K Worth Of CoreCivic Shares

Revealing a significant insider sell on February 27, Anthony Grande, EVP at CoreCivic CXW, as per the latest SEC filing.

What Happened: Grande's recent move involves selling 15,000 shares of CoreCivic. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $217,509.

In the Wednesday's morning session, CoreCivic's shares are currently trading at $14.62, experiencing a down of 0.0%.

All You Need to Know 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: Delving into Financials

Positive Revenue Trend: Examining CoreCivic's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.2% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 24.97%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): CoreCivic's EPS reflects a decline, falling below the industry average with a current EPS of 0.23.

Debt Management: With a below-average debt-to-equity ratio of 0.82, CoreCivic adopts a prudent financial strategy, indicating a balanced approach to debt management.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: CoreCivic's P/E ratio of 24.78 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.88 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): At 9.23, CoreCivic's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

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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The Impact of Insider Transactions on Investments

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.