CoreCivic, Inc. (CXW)

CoreCivic's stock price has been influenced by several events. Strong Q2 2025 earnings, driven by higher occupancy and increased federal detention needs, led to a raised financial outlook for FY2025. In Q2 2025, CoreCivic also acquired the Farmville Detention Center and reactivated several idle facilities. Q3 2025 financial results reported an increase in total revenue year-over-year, but diluted earnings per share missed analyst estimates, leading to a stock drop. The board approved a stock repurchase plan of up to $200 million and repurchased 1.9 million shares for $40 million in Q3 2025. Increased funding for ICE boosted CoreCivic's revenue and occupancy rates. The stock saw positive movement due to favorable market analysis, but also experienced declines due to cautious market sentiment regarding policy risk and ESG-driven capital pressures.

Demand for CoreCivic's products and services is not driven by traditional seasonal consumer patterns but by government policies, contract renewals, and the ability to reactivate facilities to meet demand. Demand is significantly influenced by the ongoing enforcement activities of U.S. Immigration and Customs Enforcement (ICE). The company typically secures three-to-five-year contracts with government agencies, often with multiple renewal options, providing a degree of stability to its demand.

CoreCivic, Inc. is a diversified government-solutions company and a REIT specializing in correctional, detention, and residential reentry facilities. The company operates through three segments: CoreCivic Safety, which manages correctional and detention facilities; CoreCivic Community, which operates residential reentry centers; and CoreCivic Properties, which owns correctional real estate leased to government agencies. CoreCivic's services include the design, construction, management, and renovation of correctional facilities, as well as rehabilitation and educational programs, and food and healthcare services.

CoreCivic operates across the United States, providing solutions to federal, state, and local government partners. As of December 2023, the company operated 43 correctional and detention facilities and 23 residential reentry centers, in addition to owning 6 properties leased to other operators. The company's contracts are with various government agencies, including U.S. Immigration and Customs Enforcement (ICE), the U.S. Marshals Service, and the Federal Bureau of Prisons, as well as state and local entities.

CoreCivic's brand reputation has faced scrutiny due to its business model as a private prison operator. The company has encountered reputational headwinds in the private corrections sector and policy risk and ESG-driven capital pressures. Negative sentiment is also reflected in some public commentary, indicating opposition to the private prison industry.

CoreCivic has a mixed ownership structure, with institutional investors holding a significant majority. Approximately 72.18% to 87.19% of the company's stock is owned by institutional investors, while insiders hold between 2.84% and 9.26%, and public companies and individual investors own between 3.78% and 26.09%. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, and State Street Corp. Notable individual or insider owners include Henri L. Wedell and John D. Ferguson.