Noteworthy Price Action: Could Corrections Corp Of America Change Direction After Achieving 52-Week Low?

Noteworthy Price Action: Could Corrections Corp Of America Change Direction After Achieving 52 Week Low?

The stock of Corrections Corp Of America (NYSE:CXW) hit a new 52-week low and has $12.40 target or 6.00% below today’s $13.19 share price. The 8 months bearish chart indicates high risk for the $1.51B company. The 1-year low was reported on Oct, 28 by Barchart.com. If the $12.40 price target is reached, the company will be worth $90.60M less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. Corrections Corp Of America (NYSE:CXW) has declined 58.46% since March 28, 2016 and is downtrending. It has underperformed by 63.18% the S&P500.

Analysts await Corrections Corp Of America (NYSE:CXW) to report earnings on November, 2. They expect $0.68 earnings per share, up 7.94% or $0.05 from last year’s $0.63 per share. CXW’s profit will be $77.91 million for 4.85 P/E if the $0.68 EPS becomes a reality. After $0.69 actual earnings per share 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), 1 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 33% are positive. Corrections Corp has been the topic of 9 analyst reports since November 6, 2015 according to StockzIntelligence Inc. As per Thursday, October 20, the company rating was maintained by Canaccord Genuity. The firm has “Hold” rating given on Wednesday, August 24 by Canaccord Genuity. On Thursday, September 1 the stock rating was maintained by SunTrust with “Neutral”. On Wednesday, October 12 the stock rating was upgraded by SunTrust to “Buy”. As per Friday, July 1, the company rating was downgraded by Suntrust Robinson. The rating was maintained by Canaccord Genuity on Friday, November 6 with “Hold”. The firm earned “Hold” rating on Tuesday, March 22 by Canaccord Genuity. The stock of Corrections Corp Of America (NYSE:CXW) has “Hold” rating given on Friday, August 5 by Canaccord Genuity. Suntrust Robinson maintained Corrections Corp Of America (NYSE:CXW) rating on Thursday, September 1. Suntrust Robinson has “Neutral” rating and $20 price target.

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 2016 Q2. Its up 0.17, from 1.25 in 2016Q1. The ratio is positive, 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.
Shinko Asset Mgmt Limited holds 0.57% of its portfolio in Corrections Corp Of America (NYSE:CXW) for 2.32 million shares. Allianz Asset Mgmt Ag has invested 0% of its portfolio in Corrections Corp Of America (NYSE:CXW). Moreover, Sg Americas Lc has 0.02% invested in Corrections Corp Of America (NYSE:CXW) for 61,547 shares. Schwab Charles Inv Mgmt last reported 633,592 shares in the company. Acadian Asset Mgmt Limited Com accumulated 13,991 shares or 0% of the stock. Sei Investments owns 31,679 shares or 0.01% of their US portfolio. The New York-based Tiaa Cref Inv Management Ltd Com has invested 0.01% in Corrections Corp Of America (NYSE:CXW). Utah Retirement last reported 40,820 shares in the company. Retail Bank holds 67,707 shares or 0.04% of its portfolio. The Wisconsin-based Johnson Grp has invested 0.15% in Corrections Corp Of America (NYSE:CXW). Invesco Limited reported 4.43 million shares or 0.06% of all its holdings. Honeywell Intll Incorporated holds 50,775 shares or 0.05% of its portfolio. Point72 Asia (Hong Kong) Ltd, a Hong Kong-based fund reported 1,600 shares. Nuance Investments Ltd Llc last reported 0.15% of its portfolio in the stock. Ubs Asset Americas Inc owns 120,175 shares or 0% of their US portfolio.

Insider Transactions: Since August 18, 2016, the stock had 5 insider purchases, and 0 insider sales for $420,191 net activity. The insider OVERBY CHARLES L bought 5,000 shares worth $99,250. The insider MARIUCCI ANNE L bought 5,000 shares worth $96,300. 10,000 shares were bought by Emkes Mark A, worth $171,889. Irwin Scott D had bought 300 shares worth $5,100. 2,870 shares were bought by Hininger Damon T, worth $47,652 on Thursday, August 18.

More notable recent Corrections Corp Of America (NYSE:CXW) news were published by: Reuters.com which released: “BRIEF-Corrections Corporation of America rebrands as Corecivic” on October 28, 2016, also Globenewswire.com with their article: “Corrections Corporation of America Rebrands as CoreCivic” published on October 28, 2016, Realmoney.Thestreet.com published: “Corrections Corp. of America: Value Investing for the Strong of Stomach” on October 14, 2016. More interesting news about Corrections Corp Of America (NYSE:CXW) were released by: Fool.com and their article: “Why Barracuda Networks, Corrections Corp. of America, and Mueller Water …” published on October 12, 2016 as well as Zacks.com‘s news article titled: “Bear of the Day: Corrections Corp of America (CXW)” with publication date: October 13, 2016.

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.

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