On September 30, 2024, COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) made a significant move by acquiring an additional 934,591 shares of CoreCivic Inc (CXW, Financial) at a price of $12.65 per share. This transaction increased the firm's total holdings in CoreCivic to 5,573,891 shares. The strategic acquisition reflects the firm's confidence in CoreCivic's potential, despite the stock being significantly overvalued according to current GF Valuation metrics. The transaction had a 0.43% impact on the firm's portfolio, with CoreCivic now representing 2.55% of its overall holdings.
Profile of COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio)
COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) is a prominent investment firm located at 60 East 42nd Street, New York, NY. The firm is known for its investment philosophy that focuses on sectors such as Consumer Cyclical and Technology. With an equity value of $3.1 billion, the firm manages a diverse portfolio comprising 90 stocks. Some of its top holdings include Bath & Body Works Inc (BBWI, Financial), Newell Brands Inc (NWL, Financial), and O-I Glass Inc (OI, Financial). The firm's strategic investments are aimed at maximizing returns while managing risk effectively.
CoreCivic Inc Company Overview
CoreCivic Inc is a leading operator of private prisons and detention centers in the United States. The company operates through three main segments: Safety, Community, and Properties. The Safety segment, which includes correctional and detention facilities, is the primary revenue driver. CoreCivic's market capitalization stands at $2.34 billion, with a current stock price of $21.2295. Despite its significant role in the business services industry, the stock is considered significantly overvalued with a GF Value of $12.63.
Analysis of the Transaction Impact
The recent acquisition by COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) increased its position in CoreCivic Inc to 5.05% of its holdings. This strategic move indicates the firm's belief in the potential growth and profitability of CoreCivic, despite the stock's current valuation challenges. The transaction has positioned CoreCivic as a more significant component of the firm's portfolio, reflecting a calculated risk to capitalize on potential future gains.
Financial Metrics and Valuation of CoreCivic Inc
CoreCivic Inc's current GF Valuation suggests the stock is significantly overvalued, with a GF Value of $12.63 and a price-to-GF Value ratio of 1.69. The stock has experienced a year-to-date price change of 46.11% and a 67.82% gain since the transaction. Despite these gains, the stock's valuation remains a concern for potential investors, as it trades at a premium over its intrinsic value.
Performance and Growth Indicators
CoreCivic Inc has a GF Score of 63/100, indicating poor future performance potential. The company's Balance Sheet Rank is 6/10, and its Profitability Rank is 7/10. Recent growth metrics show a 3-year revenue growth of 1.60% and EBITDA growth of 2.10%. These indicators suggest moderate growth prospects, with room for improvement in financial performance.
Market Position and Competitive Analysis
Within the business services industry, CoreCivic Inc holds a significant position as a major operator of private prisons and detention centers. The company's financial health and growth prospects are compared with other firms in the sector. Gotham Asset Management, LLC is the largest guru holding shares of CoreCivic Inc, highlighting the stock's appeal to institutional investors. Despite challenges, CoreCivic's strategic positioning and operational focus provide a competitive edge in the industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
