Why Is Geo Group Stock Rising Today?

The company received a federal contract to help the government check the addresses of individuals on the federal government’s non-detained docket.

• Its subsidiary BI Inc. has been a long–term associate of the federal government.
• President Donald Trump’s signature tax and spending bill includes $45 billion for immigration detention.
• The company noted in November that the pace of new detention contracts has been slower than anticipated.

Geo Group (GEO) stock gained over 3% in early trading on Monday after the prison operator’s unit BI received a $121 million contract from U.S. Immigration and Customs Enforcement to procure its services.

The company said that through the two-year contract, it will provide the federal government with enhanced location research with identifiable information, commercial data verification, and physical observation to verify current address information and investigate alternative address information for individuals on the federal government’s non-detained docket.

“The expansion of our services addressing the non-detained docket through this new contract is a testament to the high-quality solutions BI has provided to ICE for more than 21 years,” CEO George Zoley said.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Geo trended in the ‘bullish’ territory at the time of writing.

U.S. President Donald Trump has taken a tough stance on immigration enforcement. His signature tax and spending bill, which passed the Senate in July, includes $45 billion for immigration detention, expanding capacity from the current daily average of about 41,500 people to at least 100,000. If implemented, it would mark the largest level of immigration detention ever recorded.

Slower Contracts

However, Geo Group’s stock has fallen 43% this year. The company noted in November that the pace of new detention contracts has been slower than anticipated. It also listed out three factors.

The firm noted that the Department of Homeland Security now requires the Secretary to approve all contracts over $100,000, a time- and staff-intensive process.

It also highlighted that a recent government shutdown has likely delayed new contract awards, as agencies tend to limit contracting during funding lapses. At the same time, ICE is seeking to double its workforce from about 10,000 to 20,000 employees, thereby delaying its ability to move forward with its plans, it said.

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