On September 15, 2023, Cole Carter, the Executive Vice President, General Counsel, and Secretary of CoreCivic Inc (CXW, Financial), sold 5,000 shares of the company. This move is part of a series of transactions made by the insider over the past year, during which Carter has sold a total of 35,000 shares and made no purchases.
CoreCivic Inc is a diversified government solutions company with the scale and experience needed to solve tough government challenges in cost-effective ways. The company provides a broad range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider transactions. Over the past year, there have been no insider buys and 24 insider sells for CoreCivic Inc.
The trend of insider selling could be a signal of the insider's confidence in the company's future performance. However, it's important to note that insider selling does not necessarily indicate a negative outlook. Insiders may sell shares for personal reasons or to diversify their investment portfolio.
On the day of the insider's recent sell, shares of CoreCivic Inc were trading at $10.26, giving the company a market cap of $1.174 billion. The price-earnings ratio is 10.04, lower than both the industry median of 16.68 and the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical performance.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, CoreCivic Inc has a price-to-GF-Value ratio of 1.05. This indicates that the stock is fairly valued.
In conclusion, the insider's recent sell of CoreCivic Inc shares, along with the company's current valuation, suggests that the stock is fairly valued. Investors should keep an eye on the company's future performance and any further insider transactions to gain more insights into the company's prospects.
