Reported 11 months ago
Shares of CoreCivic Inc. and Target Hospitality Corp. dropped significantly after US authorities announced the closure of a costly migrant detention facility in Dilley, Texas. CoreCivic's stock fell by as much as 27% following the news, and Target Hospitality Corp. saw a record 42% decline intraday due to the expected contract termination. The closure at Dilley comes after President Joe Biden's executive order banning illegal border crossers from obtaining asylum, prompting ICE to reallocate funds to increase detention capacity by 1,600 beds. Both CoreCivic and Target Hospitality are expected to face financial setbacks due to the contract loss, with CoreCivic suspending its 2024 financial guidance and predicting a negative impact on annual earnings, leading analysts to downgrade their ratings and revise price targets.
Source: YAHOO