Hodges Capital Management Inc. increased its position in The GEO Group by 507,012 shares, boosting its stake to $19.6 million. The fund now holds 1.7% of its reportable U.S. equity AUM. GEO shares were priced at $15.41 on Nov. 6, down 28.3% over the past year.

The GEO Group offers correctional, detention, and community reentry services in the U.S., Australia, and South Africa. Revenue comes from long-term government contracts. Top customers include U.S. federal, state, and local agencies, along with international clients.

Despite earnings growth, GEO Group’s stock price dropped 10% after the third-quarter release. Hodges Capital Management’s increased stake shows confidence. GEO reported a 13.1% revenue increase to $682.3 million and adjusted earnings of $0.25 per share.

Investors should watch for Hodges Capital Management’s next quarterly holdings release. The fund’s increased share ownership in GEO Group reflects long-term confidence. GEO Group highlighted new contracts with U.S. Customs and Immigration Enforcement, but the stock price fell due to weak fourth-quarter guidance.

Read more at Nasdaq: Hodges Capital Loads Up On 507,000 GEO Group Shares