What Are The Risk Factors For The GEO Group Inc. (GEO)?

SNOW Stock
SNOW Stock

As of Friday close, The GEO Group Inc.’s (NYSE:GEO) stock was down -$0.05, moving down -0.66 percent to $7.57. The average number of shares traded per day over the past five days has been 3,308,040 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.82 fall in that time frame. In the last twenty days, the average volume was 2,838,860, while in the previous 50 days, it was 2,781,474.

Since last month, GEO stock retreated -23.54%. Shares of the company fell to $7.46 on 03/17/23, the lowest level in the past month. A 52-week high of $12.44 was reached on 02/13/23 after having rallying from a 52-week low of $5.66. Since the beginning of this year, GEO’s stock price has dropped by -30.87% or -$3.38, and marked a new high 8 times. However, the stock has declined by -39.17% since its 52-week high.

Do You Know The Best Place To Find Gains In Volatile Markets?

In today's chaotic marketplace, the biggest gains will come from some currently-small companies that pass by older, larger businesses still stuck in a pre-pandemic world. The trick is figuring out which small caps will be tomorrow's winners. That's why StockWire News has put together a special Wealth Building Report, highlighting 3 small cap stocks set to soar in 2023.

Click here for full details and to join for free.


GEO stock investors should be aware that The GEO Group Inc. (GEO) stock had its last reported insider trading activity 96 days ago on Dec 12. Black James H., the SVP & Pres, Secure Services of the company, disposed of 3,000 shares for $10.99 on Dec 12. It resulted in a $32,970 divestment by the insider. March Shayn P. sold 2,500 shares at an average price of $10.00 on Nov 21. The insider now owns 56,779 shares following the transaction.

Valuation Metrics

Right now, The GEO Group Inc. (GEO) has a P/E ratio of about 6.50. The stock’s beta is 0.72. Besides these, the trailing price-to-sales (P/S) ratio of 0.40, the price-to-book (PB) ratio of 0.79, and the price-to-cash flow ratio of 4.62 may also be considered.

The latest dividend of $0.25 per share was paid out, which is -26.47% less than last year’s $0.34.

Financial Health

In the three months ended December 30, The GEO Group Inc.’s quick ratio stood at 1.30, while its current ratio was 1.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 1.66, and the total debt-to-equity ratio was 1.70. On the profitability front, the trailing twelve-month gross margin is 30.00% percent. In the year ended December 30, operating margins totaled 14.50%. Based on annual data, GEO earned $713.0 million in gross profit and brought in $2.38 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 9.00%. Return on equity (ROE) for the past 12 months was 13.00%.

In The GEO Group Inc.’s quarter-end financial report for December 30, it reported total debt of $1.93 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. GEO’s revenue rose 16.75% to $598.9 million during the quarter, while net income inched up to $669.37 million. While analysts expected The GEO Group Inc. to report $0.26 quarterly earnings, the actual figure was $0.28 per share, beating the consensus estimate by 7.70%. During the quarter, the company generated $143.81 million in EBITDA. The liabilities of The GEO Group Inc. were 2.6 billion at the end of its most recent quarter ended December 30, and its total debt was $2.08 billion. The value of shareholders’ equity is $124.11 million.

Technical Picture

This quick technical analysis looks at The GEO Group Inc.’s (GEO) price momentum. With a historical volatility rate of 53.09%, the RSI 9-day stood at 26.32% on 17 March.

With respect to its five-day moving average, the current The GEO Group Inc. price is down by -9.77% percent or -$0.82. At present, GEO shares trade -24.00% below its 20-day simple moving average and -11.67% percent below its 100-day simple moving average. However, the stock is currently trading approximately -28.65% below its SMA50 and +6.47% above its SMA200.

Stochastic coefficient K was 8.76% and Stochastic coefficient D was 10.95%, while ATR was 0.44. Given the Stochastic reading of 6.18% for the 14-day period, the RSI (14) reading has been calculated as 29.18%. As of today, the MACD Oscillator reading stands at -0.45, while the 14-day reading stands at -0.72.

Analyst Ratings

Wedbush upgraded its rating on The GEO Group Inc. (NYSE: GEO) to an Outperform in a note to investors on November 29, 2022. The analysts firm previously had a Neutral rating on the stock.The GEO Group Inc. (GEO) has been rated Buy by analysts. According to 0 brokerage firms, GEO is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate The GEO Group Inc. stock as buy, with 2 recommending it as overweight.

With a median target price of $15.00, the current consensus forecast for the stock is $13.00 – $15.00. Based on these forecasts, analysts predict The GEO Group Inc. (GEO) will achieve an average price target of $14.33.


Please enter your comment!
Please enter your name here