GEO - Geo Group: A Potential Election Play
2024-04-17 10:37:26 ET
Summary
- Shares of prison owner/operator The GEO Group, Inc. have rallied since suspending its dividend and reorganizing into a C-Corp to pay down debt.
- The move away from the REIT structure was prompted by a Biden administration executive order that prohibited the renewal of federal contracts with privately owned prisons.
- The company recently restructured its debt, and the upcoming election could put a floor under its stock.
- An investment analysis of The GEO Group, Inc. follows in the paragraphs below.
Shares of prison owner/operator The GEO Group, Inc. ( GEO ) have rallied forcefully since June 2021, shortly after suspending its dividend, eventually reorganizing into a C-Corp to pay down debt. The move away from the real estate investment trust, or REIT, structure was compelled by a Biden administration executive order that prohibited the renewal of federal contracts with privately owned prisons. With high-interest rates on its debt but a stable, visible, albeit tepid outlook that could improve markedly on Election Day 2024, the recent insider buying merited a deeper dive. An analysis follows below....
Geo Group: A Potential Election Play