Mark Emkes Is The Independent Chairman of the Board of CoreCivic, Inc. (NYSE:CXW) And They Just Picked Up 10% More Shares

By
Simply Wall St
Published
March 17, 2022
NYSE:CXW
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Mark Emkes, the Independent Chairman of the Board of CoreCivic, Inc. (NYSE:CXW) recently shelled out US$85k to buy stock, at US$8.52 per share. That purchase might not be huge but it did increase their holding by 10%.

Check out our latest analysis for CoreCivic

The Last 12 Months Of Insider Transactions At CoreCivic

Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Development Officer, Anthony Grande, for US$372k worth of shares, at about US$8.28 per share. That means that an insider was selling shares at slightly below the current price (US$9.40). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 33% of Anthony Grande's holding.

Over the last year we saw more insider selling of CoreCivic shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:CXW Insider Trading Volume March 17th 2022

I will like CoreCivic better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of CoreCivic

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.3% of CoreCivic shares, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The CoreCivic Insider Transactions Indicate?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in CoreCivic, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for CoreCivic and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.