Northland Securities Reiterates a Buy Rating on The GEO Group (GEO), Sets a $42 PT

The GEO Group, Inc. (NYSE:GEO) is one of the top NYSE stocks with the highest upside potential. On August 4, Northland Securities analyst Greg Gibas maintained a Buy rating on The GEO Group, Inc. (NYSE:GEO) and set a price target of $42.00.

In other news, The GEO Group, Inc. (NYSE:GEO) announced on July 28 that it completed the sale of its Lawton Correctional Facility located in Lawton, Oklahoma, to the State of Oklahoma for $312 million. It simultaneously transitioned the operations of the Lawton Facility to the Oklahoma Department of Corrections.

The GEO Group, Inc. (NYSE:GEO) has plans to use the net proceeds from this sale for the acquisition of the 770-bed Western Region Detention Facility located in San Diego, California, in a like-kind real estate property exchange.

The company also expects to “pay off additional senior secured debt, including the remaining balance of the Term Loan B outstanding under the Company’s recently amended Credit Agreement.”

Management stated that the transactions are expected to bring The GEO Group, Inc.’s (NYSE:GEO) total net debt to approximately $1.47 billion, positioning the company to consider potential future capital returns.

The GEO Group, Inc. (NYSE:GEO) designs, finances, develops, and supports services for processing centers, secure facilities, and community re-entry facilities. Its operations are divided into the following segments: US Secure, Electronic Monitoring and Supervision, Re-entry, and International Services.

The US Secure Services segment comprises the US-based public-private partnership correction and detention segment, while the Electronic Monitoring and Supervision Services segment offers services in the US.

The International Services segment offers public-private partnership secure services operations in South Africa and Australia, and the Re-entry Services Segment comprises various community-based and re-entry services.

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Disclosure: None. This article is originally published at Insider Monkey.