George Zoley, Chairman of the Board at
Geo Group (GEO), recently bought 50,000 shares. The buy came to a total cost of $624,025, and increased his position by 1%.
This marks the first insider buy at the company over the past two years. Two company executives and one director have been small sellers of shares over the past two years, with the largest insider sale coming to just over $107,000.
Overall, Geo Group insiders own 5.1% of shares.
The security and protection services company is up over 64% in the past year, more than double the return on the stock market.
Revenues have been flat over the past year, and Geo Group still carries a low 4% profit margin.
Even with the runup in price, shares are still inexpensive at 13 times forward earnings.
Action to take: The company is somewhat controversial as they manage a number of correctional facilities. And it’s become a way to play potential political changes this year.
The election of a more tough-on-crime president could cause shares to soar even more in the years ahead. For now, shares could continue to rally into the fall.
For traders, shares are in an uptrend. The September $15 calls, last trading for about $1.20, could see mid-to-high double-digit returns on a continuation of that rally in the next six months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.