Movers and SHAKERS
CoreCivic, Inc. (CXW)
Now the US Marshals Service?
CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
USMS. The US Marshals Service has notified CoreCivic that is does not anticipate renewing its contract with CoreCivic at the Company's Northeast Ohio Correctional Center. CoreCivic currently houses approximately 800 federal detainees at the complex. This appears to be in reaction to President Biden's EO directing the Department of Justice not to renew contracts with privately operated criminal detention facilities.
Impact. The USMS announcement can be a game changer. Recall, the USMS represented 21% of CoreCivic's 2020 revenue. Assuming the order is enforced, we see two additional USMS contracts that expire in 2021 and two more that are on indefinite contracts that typically can be terminated at will. There also are additional contracts where USMS is not the lead contract holder, such as is the case with ...
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.