CoreCivic, Inc. (NYSE: CXW) saw its stock price surge 5.96% in pre-market trading on Monday, following the company's announcement of a significant increase to its share repurchase program. The correctional facilities operator has authorized an additional $200 million for stock buybacks, bringing the total program authorization to $700 million.

The expanded repurchase program demonstrates CoreCivic's confidence in its business prospects and commitment to enhancing shareholder value. Since the program's inception in May 2022, the company has already repurchased 21.5 million shares at an average price of $14.98 per share, totaling $322.1 million. With the new authorization, CoreCivic now has $377.9 million available for future share repurchases.

CoreCivic's CEO, Damon T. Hininger, stated that the company believes its current valuation does not fully reflect the progress and opportunities in its business. President and COO Patrick D. Swindle added that recent contract awards and overall business strength position the company well to execute its capital allocation strategy, with a priority on the share repurchase program given the current share price and earnings trajectory.