CoreCivic (CXW) Offers $19 Put Option, Attracting Investor Interest

Written by Emily J. Thompson, Senior Investment Analyst

CXW+1.52%

Source: NASDAQ.COM

Updated: Jan 15 2026

0mins

Source: NASDAQ.COM

Put Option Appeal: CoreCivic's $19 put option has a current bid of $0.50, and if an investor sells it, they commit to buying shares at $19, effectively lowering their cost basis to $18.50, which is a 5% discount from the current price of $20.02, making it attractive for potential CXW investors.
Yield Potential Analysis: Should the put option expire worthless, it would yield a 2.63% return on the cash commitment, or an annualized yield of 3.91%, referred to as YieldBoost, highlighting the attractiveness of this investment strategy.
Call Option Opportunity: Additionally, the $22 call option for CXW has a current bid of $0.40, and if an investor buys shares at $20.02 and sells this call, they could achieve an 11.89% total return if the stock is called away at expiration, indicating significant profit potential.
Risk Assessment: Current data suggests a 51% chance that the $22 call option will expire worthless, allowing investors to retain both their shares and the premium collected, further enhancing the investment's appeal.

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CXW

$18.75+Infinity%1D

Analyst Views on CXW

Wall Street analysts forecast CXW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CXW is 30.00 USD with a low forecast of 28.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Analyst Rating

3 Buy

0 Hold

0 Sell

Strong Buy

Current: 18.470

Low

28.00

Averages

30.00

High

32.00

Current: 18.470

Low

28.00

Averages

30.00

High

32.00

Texas Capital

initiated

$28

2025-06-30

Reason

Texas Capital

Price Target

$28

AI Analysis

2025-06-30

initiated

Reason

Texas Capital initiated coverage of CoreCivic with a Buy rating and $28 price target.

Texas Capital

Raj Sharma

Buy

initiated

$28

2025-06-30

Reason

Texas Capital

Raj Sharma

Price Target

$28

2025-06-30

initiated

Buy

Reason

As previously reported, Texas Capital analyst Raj Sharma initiated coverage of CoreCivic (CXW) with a Buy rating and $28 price target. Private prisons currently contain less than 8% of the country's prison population, with CoreCivic being the largest owner/operator in the U.S. and largest private-owner of correctional real estate utilized by government agencies in the U.S., the analyst tells investors. While both CoreCivic and peer Geo Group (GEO) are "attractive investments," the investment case for for the former centers on deployment of currently idle incremental prison facilities, as well as potentially winning incremental monitoring and supervision contracts over the next 12 to 24 months, the analyst says. CoreCivic currently has eight idle facilities that could be reopened under "favorable contract terms," the analyst added.

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About CXW

CoreCivic, Inc. is a diversified, government-solutions company. The Company provides a range of solutions to government partners that serve the public good through corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. Its CoreCivic Safety segment consists of correctional and detention facilities that are owned or controlled via a long-term lease and managed by the Company, as well as those correctional and detention facilities owned by third parties but managed by the Company. The segment also provides transportation services. CoreCivic Community segment consists of residential reentry centers that are owned or controlled via a long-term lease and managed by the Company. The segment also includes electronic monitoring and case management services. CoreCivic Properties segment consists of correctional real estate properties owned by the Company.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.