Is Corrections Corp Of America’s Fuel For Real? The Stock Was Bought By Option Traders

 Is Corrections Corp Of America's Fuel For Real? The Stock Was Bought By Option Traders

In today’s session Corrections Corp Of America (CXW) registered an unusually high (1,280) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious CXW increase. With 1,280 contracts traded and 12774 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: CXW161118C00015000 closed last at: $1.05 or 4.5% down. Corrections Corp Of America (NYSE:CXW) has declined 54.71% since March 4, 2016 and is downtrending. It has underperformed by 62.74% the S&P500.

Analysts await Corrections Corp Of America (NYSE:CXW) to report earnings on November, 2. They expect $0.68 EPS, up 7.94% or $0.05 from last year’s $0.63 per share. CXW’s profit will be $77.76M for 4.92 P/E if the $0.68 EPS becomes a reality. After $0.69 actual EPS reported by Corrections Corp Of America for the previous quarter, Wall Street now forecasts -1.45% negative EPS growth.

Corrections Corp Of America (NYSE:CXW) Ratings Coverage

Out of 3 analysts covering Corrections Corp (NYSE:CXW), 0 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 0 are positive. Corrections Corp has been the topic of 7 analyst reports since November 6, 2015 according to StockzIntelligence Inc. The firm has “Neutral” rating given on Thursday, September 1 by SunTrust. The rating was maintained by Canaccord Genuity on Wednesday, August 24 with “Hold”. Canaccord Genuity maintained the shares of CXW in a report on Friday, November 6 with “Hold” rating. Canaccord Genuity maintained Corrections Corp Of America (NYSE:CXW) rating on Tuesday, March 22. Canaccord Genuity has “Hold” rating and $33 price target. The company was maintained on Thursday, September 1 by Suntrust Robinson. On Friday, August 5 the stock rating was maintained by Canaccord Genuity with “Hold”. Suntrust Robinson downgraded the stock to “Neutral” rating in Friday, July 1 report.

According to Zacks Investment Research, “Corrections Corporation of America is a real estate investment trust. It owns, operates and manages correctional, detention facilities and prisons primarily in the United States. In addition to providing the fundamental residential services relating to inmates, the company also offers rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. Corrections Corporation of America is based in Nashville, Tennessee.”

Insitutional Activity: The institutional sentiment increased to 1.42 in Q2 2016. Its up 0.17, from 1.25 in 2016Q1. The ratio increased, as 20 funds sold all Corrections Corp Of America shares owned while 84 reduced positions. 37 funds bought stakes while 111 increased positions. They now own 105.78 million shares or 0.65% less from 106.47 million shares in 2016Q1.
The New Jersey-based Kcg Holding has invested 0% in Corrections Corp Of America (NYSE:CXW). Ubs Asset Americas last reported 120,175 shares in the company. Commonwealth Of Pennsylvania Public School Empls Retrmt Systems has 22,611 shares for 0.01% of their US portfolio. State Treasurer State Of Michigan holds 47,112 shares or 0.01% of its portfolio. Omers Administration Corporation has invested 0.14% of its portfolio in Corrections Corp Of America (NYSE:CXW). Moreover, Profund Advisors Limited Liability Co has 0.05% invested in Corrections Corp Of America (NYSE:CXW) for 28,472 shares. Shelton holds 0.03% of its portfolio in Corrections Corp Of America (NYSE:CXW) for 11,158 shares. Wfg Advisors L P accumulated 150 shares or 0% of the stock. The Illinois-based First Tru Advsrs Ltd Partnership has invested 0.05% in Corrections Corp Of America (NYSE:CXW). Gsa Cap Prtn Limited Liability Partnership last reported 0.03% of its portfolio in the stock. Arizona State Retirement System has 45,877 shares for 0.02% of their US portfolio. Sg Americas Secs Lc reported 61,547 shares or 0.02% of all its holdings. Nationwide Fund Advisors owns 352,594 shares or 0.05% of their US portfolio. Thrivent Financial For Lutherans last reported 0% of its portfolio in the stock. Convergence Investment Prns Ltd Liability last reported 59,385 shares in the company.

Insider Transactions: Since August 18, 2016, the stock had 5 insider purchases, and 0 insider sales for $420,191 net activity. Hininger Damon T bought $47,652 worth of stock. $96,300 worth of Corrections Corp Of America (NYSE:CXW) was bought by MARIUCCI ANNE L on Friday, August 19. 5,000 shares were bought by OVERBY CHARLES L, worth $99,250 on Friday, August 19. On Thursday, August 18 Irwin Scott D bought $5,100 worth of the stock or 300 shares. Emkes Mark A bought $171,889 worth of stock or 10,000 shares.

Corrections Corporation of America is a real estate investment trust . The company has a market cap of $1.53 billion. The Firm is engaged in owning, operating and managing prisons and other correctional facilities, and providing residential, community re-entry, and prisoner transportation services for governmental agencies. It has a 7.76 P/E ratio. The Company’s facilities offer a range of rehabilitation and educational programs, including basic education, faith services, life skills and employment training, and substance abuse treatment.

CXW Company Profile

Corrections Corporation of America, incorporated on September 24, 1998, is a real estate investment trust (REIT). The Firm is engaged in owning, operating and managing prisons and other correctional facilities, and providing residential, community re-entry and prisoner transportation services for governmental agencies. In addition to providing fundamental residential services, the Company’s facilities offer a range of rehabilitation and educational programs, including basic education, faith services, life skills and employment training, and substance abuse treatment. It also provides or makes available to offenders certain healthcare (including medical, dental and mental health services), food services and work and recreational programs. The Company’s clients consist of federal, state and local correctional and detention authorities. Federal correctional and detention authorities consist of the Federal Bureau of Prisons (the BOP), the United States Marshals Service (the USMS), and the United States Immigration and Customs Enforcement (ICE). The Company’s customer contracts have terms of three to five years and contain multiple renewal options. Most of its facility contracts also contain clauses that allow the government agency to terminate the contract at any time without cause.

More important recent Corrections Corp Of America (NYSE:CXW) news were published by: Money.Cnn.com which released: “Clinton call for end of private prisons sinks jail stocks” on September 27, 2016, also Nasdaq.com published article titled: “Corrections Corporation of America Becomes Oversold”, Finance.Yahoo.com published: “Important Deadline Reminder For Corrections Corporation Of America Shareholders” on September 13, 2016. More interesting news about Corrections Corp Of America (NYSE:CXW) was released by: Seekingalpha.com and their article: “Why I’m Dipping My Toe In Beaten-Down Corrections Corporation Of America” with publication date: September 19, 2016.

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