Private-Prison Stock Tumbles on ICE Detention Center Closing.

DETENTION facilities; GOING private (Securities); CORPORATE profits; DISCHARGE of contracts; GROSS margins; SETTLEMENT costs

Shares of CoreCivic Inc., a private prison operator, dropped 20% after US officials announced the closure of a costly detention facility for migrants in Dilley, Texas. The closure is a result of President Joe Biden's executive order banning asylum for migrants who cross the US southern border illegally. The closure is expected to impact CoreCivic's annual earnings and led analysts to downgrade the company's shares. Additionally, Target Hospitality Corp., which provides hospitality services to the facility, saw its stock fall by a record 31% on the expected contract termination. [Extracted from the article]

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