Geo Group (GEO), Opendoor (OPEN) stocks pop on contracts, purchases

Highlights

  • The S&P 500 real estate sector gained 1.41% over the past one month.
  • Geo Group Inc (The) REIT (NYSE: GEO) struck new deals with municipalities.

  • Opendoor Technologies Inc (NASDAQ: OPEN) purchased a record 8,500 properties in Q2.

Geo Group Inc REIT (NYSE: GEO) stock was up 8.7%, and Opendoor Technologies Inc (NASDAQ: OPEN) stock gained 7.7% in the final trading hour on Friday as they drew renewed attention from investors following their major deals and purchases.

GEO stock was up 8.78% to US$8.485, while OPEN stock traded at US$21.8, up 7.76%, at 3:02 pm ET from their previous closing prices. 

Here’s a look at their recent developments. 

Geo Group Inc 

Geo is the real estate investment trust that runs detention and rehabilitation centers. It also provides education counselling, drug abuse treatment, and supervision services.

The Boca Raton, Florida-based company earns a significant part of its revenue from US facilities. Its market cap is US$1.00 billion. The EPS is US$1.12, the P/E ratio is 7.53m, and the forward P/E ratio one year is 3.04. The stock traded in the range of US$1.49 to US$4.96 in the last 52 weeks.

For the quarter ended June 30, 2021, the revenue was US$565.4 million, and net income was US$41.9 million. In the same quarter of the previous year, revenue and net income were US$587.8 million and US$36.7 million, respectively. Its earnings per share diluted reduced to US$0.29 from US$0.31 in the previous year.

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The stock had fallen sharply after President Biden hinted at phasing out contracts for privately operated prisons. However, the company has recently struck deals with municipalities that may help improve its financials. Its federal contracts were due to expire soon.

On Oct 7, the stock closed at US$7.8 with a trading volume of 2,026,140.

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Trending real estate stocks: Geo Group Inc REIT (NYSE: GEO) and Opendoor Technologies Inc (NASDAQ: OPEN).

Source - pixabay

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Opendoor Technologies Inc.

Opendoor provides a digital platform for residential real estate. It enables home buyers and sellers to transact online. The stock jumped on Friday for no apparent reason. However, its robust business and the improving real estate market could be the reason for the stock’s rally.

The Tempe, Arizona-based company holds a market capitalization of US$13 billion. The stock is currently trading at almost half the price of its 52-week of US$39.24. Its 52-week lowest price was US$13.44.

Opendoor had purchased a record 8,500 properties during the second quarter of 2021.

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OPEN posted revenue of US$1.19 billion for the June quarter of 2021 compared to US$740 million in the June quarter of the previous year. The net loss was US$143.8 million against a net loss of US$56 million in the year-ago period. The net loss per share diluted reduced to US$0.24 compared to US$0.66 per share diluted in the same quarter of the previous year.

On Friday, its stock crossed the 200-day moving average of US$20.66. On Oct 7, it closed at US$20.23 with a trading volume of 14,801,170.

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Bottomline 

Geo stock rose 13.79% in one month but fell about 25% in one year. Conversely, Opendoor stock grew 5.5% in one month and 15.3% in one year. The stock markets have been volatile in recent times. Hence, investors should exercise due diligence before investing.

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