Why The GEO Group Stock Fell 10% at the Open on June 17
Shares of real estate investment trust (REIT) The GEO Group (NYSE: GEO) were off 10% as Wall Street opened on June 17, and were still down by 8.2% roughly an hour and a half into the trading day. The thing is, nothing material appears to have changed with the corrections facility operator. Investors were instead reacting to news from its peer, CoreCivic (NYSE: CXW), that sent that stock down by 20% or so in early trading.
The big news from CoreCivic was twofold. First, it's suspending its dividend. Second, and likely more important for investors in both CoreCivic and The GEO Group, is that CoreCivic is reevaluating its corporate structure. Given that the two operate using similar business models, investors appear concerned that The GEO Group could follow CoreCivic's lead on both fronts.
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Source Fool.com
