STOCKS TELEGRAPH

Tag: GEO Stock

  • Why The GEO Group Inc. (GEO) stock went up in the after-market on Thursday?

    Why The GEO Group Inc. (GEO) stock went up in the after-market on Thursday?

    The GEO Group Inc. (GEO) shares jumped 14.58% in after-hours on Thursday, June 17, 2021, to close at $8.25 per share. Earlier, GEO’s stock lost 1.37% in Thursday’s morning session and reached $7.20 per share. GEO shares have fallen 40.84% over the last 12 months, and they have moved up 2.13% in the past week. Over the past three months, the stock has lost 9.66%, while over the past six months, it has shed 24.84%.

    Recent new appointments

    On June 1, 2021, GEO’s Chairman, Chief Executive Officer, and Founder, George C. Zoley, will move to the position of Executive Chairman of GEO’s Board of Directors under a new five-year employment agreement with subsequent automatic one-year renewals. The company also appointed Jose Gordo Chief Executive Officer effective July 1, 2021, and he will be reporting to MrZoley.

    Latest financial results

    On May 10, 2021, The GEO Group Inc announced its financial results for the first quarter of 2021 and updated its financial guidance for the full year 2021.

    Q1 2021 financial highlights

    • The GEO Stock reported total revenue of $576.4 million for Q1 2021 compared to $605.0 million for the first quarter of 2020.
    • For first-quarter 2021 net income attributable to GEO was $50.5 million, or $0.41 per diluted share, compared to $25.2 million, or $0.21 per diluted share, for the first quarter of 2020.
    • In Q1 2021, adjusted net income was $0.28 per diluted share compared to $0.24 per diluted share in Q1 2020.
    • Net Operating Income of $152.3 million in Q1 2021 compared to $150.18 million in Q1 2020.
    • For Q1 2021, Normalized Funds From Operations was$53.1 million, or $0.44 per diluted share, compared to $47.2 million, or $0.39 per diluted share, for the first quarter of 2020.
    • Adjusted Funds from Operations was $72.2 million, or $0.60 per diluted share in Q1 2021, compared to $66.6 million, or $0.55 per diluted share, for the first quarter of 2020.
    • As of March 31, 2021, the company had cash and cash equivalents of $289.4 million.

    2021 Financial outlook

    The company has updated its financial outlook for FY 2021 and now expecting

    • Revenue to be between $2.23-$2.25 billion for FY 2021
    • Net Income Attributable to GEO Stock in the range of $141-$150 million
    • Adjusted EBITDA in the range of $395-$406 million for FY 2021.
    • AFFO in the of $2.23-$2.31 per diluted share for FY 2021

    Conclusion

    The GEO stock surging in the after-hours on Thursday has no grounds. As of this writing, there is no recent news or development about GEO stock. So it is hard to predict how GEO will end the current week.

  • GEO stock plunged in the recent trading session: here’s why

    The GEO Group Inc. (GEO) stock recently traded at $6.21 which is a 20.38% downward movement, at the time of writing. The GEO stock previously closed at $7.80.

    GEO Group owns prisons in USA and other countries

    GEO Group is a real estate investment trust (REIT) firm that is fully integrated. It is a publicly traded trust that invests in private prisons and mental facilities. GEO also designs, finances and operates these processing centers and facilities in USA. Apart from USA this global REIT also has an operational setup in UK, South Africa and Australia. In total, it consists of 116 facilities in which it has ownership and management.

    GEO announces suspension of quarterly dividend payment

    The GEO Group Inc. has announced that its Board of Directors has decided to effectively and immediately suspend GEO’s quarterly dividend payment. The statement says that this was done for the reason of maximizing the use cash pay for the repayment of debt. The Board of Directors also stated that it wants to deleverage and promote internal growth.

    What prompted GEO’s BOD to make this move?

    This announcement of suspension of divided pay is an internal prospective decision that came as a reaction to external event. Since the Biden administration has taken up the governance of America, the sentiment towards profit-making company running the facilities has been that of disapproval. The Department of Justice has ordered for these facilities to stop being run by profit-making companies. The effects of this order are already being shown in the form of contracts cancellation and expiring-without-renewal. The Federal Bureau of Prisons and US Marshals are not agreeing to any for-profit company’s proposals.

    Thus when assessing this decision by the Biden administration, it makes more complete sense to realize why GEO Group is taking this step. The Board of Directors currently decided to keep their corporate tax structure as a Real Estate Investment Trust however it has also stated to undertake an evaluation of this structure in near future. This will be one among many changes that have been taken under consideration to be made. When REIT structure has been changed it will transform GEO stock’s financial operations as well as Internal Revenue Code 1986’s amendment to US Corporations and REITs. Furthermore, if the REIT status is maintained then the Company will be required to make an additional dividend payment before year-end which needs to be done to uphold minimum REIT distribution requirements in the IRC Code 1986.

    How will GEO’s financial operations for 2021 now look like?

    GEO stock has had $291 million cash on hand while having a carrying capacity of $209 million and $450 million through its revolving credit facility and senior credit facility, respectively. Along with the suspension of quarterly dividend payment, GEO stock has reduced its capital expenditure planned for 2021 by $35 million. A minimum of $125-$150 million net debt has been set as a goal to be repaid. The board of directors is expecting to complete the evaluation of GEO’s corporate tax structuring.

  • Healthcare REITs top trading stocks

    Healthcare REITs top trading stocks

    Healthcare REITs are companies that own, operate, or finance healthcare-related property such as hospitals, senior living facilities, nursing homes and medical office buildings. Healthcare REITs, like other REITs, pool funds from several investors and distribute dividends.

    The medical-office sector has proven robust despite the global pandemic since healthcare is considered an essential service. Medical-offices also benefited somewhat from the suspension of unnecessary procedures in many U.S. hospitals.

    The top-trading healthcare REIT stocks were:

    CareTrust REIT Inc. (NASDAQ:CTRE) shares were trading up 3.61% at $22.95 at the time of writing on Tuesday. On December 1, 2020, the company revealed that it has extended a $15 million secured mezzanine loan to Next Healthcare, Inc. in connection with Next’s acquisition of a nine-property skilled nursing portfolio in Virginia.

    CareTrust REIT Inc. (NASDAQ:CTRE) share price went from a low point around $7.16 to briefly over $23.64 in past 52 weeks, though shares have since pulled back to $22.95. CTRE market cap has remained high, hitting $2.09B at the time of writing, giving it price-to-sales ratio of more than 10.

    If we look at the recent analyst rating CTRE, KeyBanc Capital Markets upgraded coverage on CTRE shares with an Overweight rating and a $21.50 price target, which implies room for -1.45% downside momentum this year.

    Diversified Healthcare Trust (DHC) last closed at $4.32, in a 52-week range of $2.00 to $8.93. The company on November 19, 2020 reported that U.S. News and World Report, the global authority in health care rankings, has recognized 30 communities within DHC’s Senior Housing Operating Portfolio (SHOP) segment in its annual list of “Best Nursing Homes”. Analysts have a consensus price target of $3.60.

    Physicians Realty Trust (DOC) stock soar by 2.07% to $18.25. The most recent rating by KeyBanc Capital Markets, on December 14, 2020, is at a Sector weight.

    The GEO Group Inc. (NYSE:GEO) Shares headed falling, lower as much as -0.83%. The firm declared on November 23, 2020, decision by federal bureau of prisons to not rebid its contract for rivers correctional facility. The most recent rating by Noble Capital Markets, on June 29, 2020, is at an Outperform.

    Healthcare Realty Trust Incorporated (NYSE:HR) rose 2.56% after gaining more than $0.75 on Tuesday. On November 25, 2020, the company revealed the release of its second annual Corporate Responsibility Report covering Environmental, Social, and Governance (ESG) initiatives and accomplishments.

    Healthcare Trust of America Inc. (HTA) last closed at $26.72, in a 52-week range of $20.61 to $34.22. The firm on December 4, 2020 declared that its Board of Directors issued a quarterly dividend of $0.320 per share of common stock. T Analysts have a consensus price target of $29.38.

    Medical Properties Trust Inc. (MPW) stock soar by 2.64% to $21.35. On November 20, 2020, the company declared pricing of $1,300,000,000 3.500% Senior Notes Due 2031. The most recent rating by Deutsche Bank, on December 15, 2020, is at a Buy.

    Omega Healthcare Investors Inc. (NYSE:OHI) Shares headed rising, higher as much as 3.39%. The most recent rating by Wells Fargo, on December 10, 2020, is at an Overweight.

    Healthpeak Properties Inc. (NYSE:PEAK) rose 3.70% after gaining more than $1.07 on Tuesday.

    Sabra Health Care REIT Inc. (SBRA) last closed at $17.87, in a 52-week range of $5.55 to $22.55. Sabra Health Care REIT, Inc. (SBRA) on December 8, 2020 revealed the appointment of Clifton J. Porter II to its Board of Directors. Analysts have a consensus price target of $16.61.

    Ventas Inc. (VTR) stock soar by 4.41% to $49.95. The company recently reported that its Board of Directors has declared a quarterly dividend of $0.45 per common share. The most recent rating by BofA Securities, on November 30, 2020, is at a Buy.

    Welltower Inc. (NYSE:WELL) Shares headed rising, higher as much as 4.16% after issuing business update. The most recent rating by KeyBanc Capital Markets, on December 14, 2020, is at an Overweight.