Northland Capital has recently initiated Geo Group Inc (GEO) stock to Outperform rating, as announced on October 2, 2023, according to Finviz. Earlier, on November 29, 2022, Wedbush had raised the stock from a Neutral to Outperform, setting a price target of $14 for GEO stock. Wedbush also initiated Neutral rating with a price target of $7. Additionally, Noble Capital Markets initiated Outperform rating on June 29, 2020, with a target price of $15. JP Morgan analysts, in their report published on February 15, 2019, also reduced Neutral rating and set a price target of $26 for Geo Group Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Geo Group Inc (GEO) Stock Trading Recap
On Wednesday, Geo Group Inc (GEO) stock saw a decline, ending the day at $15.91 which represents a decrease of $-0.37 or -2.27% from the prior close of $16.28. The stock opened at $16.2 and touched a low of $15.85 during the day, reaching a high of $16.47. The volume of shares traded was 2.25 million exceeding the average volume of 2.07 million.
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GEO Stock Performance and Moving Averages
In recent trading, Geo Group Inc (GEO) stock price has shown some volatility, fluctuating 4.05% over the last five trades and 24.01% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 7.94%, and it has gained 15.54% in the previous three months. Currently, GEO is trading at 7.59%, 15.59%, and 16.87% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, GEO, a Industrials sector stock, is trading -11.86% below its 52-week high but remains 91.00% above its 52-week low. The Average True Range (ATR) (14 days) of 0.55 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Geo Group Inc’s Profitability and Valuation Ratios
Geo Group Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 13.86% and a profit margin of 1.41%, with a gross margin of 7.94%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Geo Group Inc’s market capitalization stands at $2.22 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 70.09, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 12.83. Additionally, the Price-to-Sales Ratio is 0.92, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.73, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 5.15% of Geo Group Inc (GEO)’s shares, while financial institutions hold 78.69%.
