Jones Trading Reaffirms Buy Rating on GEO Group, Adjusts Price Target to $37
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Analyst Views on GEO
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Prison Operators' Decline: The number of prison operators has sharply decreased, indicating significant changes in the correctional system.
Impact on Incarceration Rates: This decline may affect incarceration rates and the overall management of prison populations.
Policy Implications: The reduction in prison operators raises questions about the effectiveness of current policies and practices in the justice system.
Future of Corrections: The trend suggests a potential shift towards alternative forms of rehabilitation and community-based corrections.
- Market Performance: The GEO Group's stock has experienced a decline of approximately 4%.
- Investor Sentiment: The drop in stock value may reflect broader concerns among investors regarding the company's financial health and market position.

- Analyst Rating: GEO Group is recognized as one of the top 10 undervalued industrial stocks, with Noble Financial maintaining a Buy rating and a price target of $35, indicating a potential upside of 92% from current levels.
- Contract Award: The company recently secured a contract with U.S. Immigration and Customs Enforcement (ICE) to provide skip tracing services for non-detained individuals, expected to generate approximately $121 million in revenue, representing about 4.8% of its trailing twelve-month revenue of $2.53 billion.
- Service Expansion: GEO's subsidiary, BI Incorporated, will utilize enhanced location research and commercial data verification to deliver these services, aimed at investigating and verifying address information, thereby reinforcing the high-quality solutions provided to ICE over the past 21 years.
- Market Positioning: As a leading diversified government services provider, GEO specializes in financing, design, development, and support services for processing centers and secure facilities, and while some analysts see greater potential in AI stocks, GEO's investment value remains significant.
- Credit Facility Increase: GEO Group has amended its revolving credit facility commitments from $450M to $550M, effective January 20, 2026, enhancing the company's financial flexibility and supporting future growth needs.
- Shareholder Value Creation: Executive Chairman George Zoley stated that this amendment provides greater financial flexibility aimed at creating long-term shareholder value through an expanded stock repurchase authorization, reflecting confidence in future growth.
- Enhanced Banking Support: This significant amendment to the credit agreement further demonstrates the growing support from GEO's banking partners, ensuring financial stability for the company.
- Revenue Growth from Contracts: GEO Group recently secured an ICE contract valued at $121M, further solidifying the company's cash flow and market position.

- Active Options Trading: USA Rare Earth Inc's options volume reached 58,929 contracts today, translating to approximately 5.9 million shares, indicating a trading activity level of 55.1% of its average daily volume of 10.7 million shares over the past month.
- High-Frequency Contract Analysis: Notably, the $20 strike call option expiring on March 20, 2026, has seen a trading volume of 5,830 contracts today, representing about 583,000 shares, reflecting market expectations for future price increases.
- Competitor Dynamics: Concurrently, American Express Co. (AXP) recorded an options trading volume of 15,406 contracts today, equivalent to approximately 1.5 million shares, which is 53.8% of its average daily volume of 2.9 million shares over the past month, indicating significant market interest.
- AXP High-Frequency Contract: The $340 strike put option expiring on February 20, 2026, has traded 2,629 contracts today, representing about 262,900 shares, suggesting a cautious outlook from investors regarding its future performance.







