Why The GEO Group Stock Plunged 19.5% in February
Shares of prison real estate investment trust (REIT) The GEO Group (NYSE: GEO) fell a painful 19.5% in February according to data from S&P Global Market Intelligence. The big drop, however, really took place after the company reported earnings in the middle of the month. Clearly investors didn't like the update.
2020 wasn't a great year. The REIT's adjusted funds from operations (FFO), a metric that's similar to earnings for an industrial company, came in at $2.51 per share. That figure was $2.75 in 2019, so there was a nearly 9% drop there. That said, the bigger concern was really around the future, with the REIT noting in its earnings release, "On January 26, 2021, President Biden signed an executive order directing the United States Attorney General not to renew U.S. Department of Justice ("DOJ") contracts with privately operated criminal detention facilities."
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Source Fool.com
