Stock Analysis

One GEO Group Insider Raised Their Stake In The Previous Year

NYSE:GEO
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From what we can see, insiders were net buyers in The GEO Group, Inc.'s (NYSE:GEO ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for GEO Group

The Last 12 Months Of Insider Transactions At GEO Group

The Founder & Executive Chairman of the Board George Zoley made the biggest insider purchase in the last 12 months. That single transaction was for US$624k worth of shares at a price of US$12.48 each. Even though the purchase was made at a significantly lower price than the recent price (US$13.89), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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:GEO Insider Trading Volume May 24th 2024

GEO Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At GEO Group Have Bought Stock Recently

There has been significantly more insider buying, than selling, at GEO Group, over the last three months. Founder & Executive Chairman of the Board George Zoley spent US$624k on stock. But we did see SVP, President of Secure Services & President of U.S. Corrections James Black sell shares worth US$68k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does GEO Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. GEO Group insiders own about US$68m worth of shares. That equates to 3.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The GEO Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of GEO Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in GEO Group.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

About NYSE:GEO

GEO Group

The GEO Group, Inc. (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa.

Undervalued with moderate growth potential.