Private-Prison Stock Tanks on ICE Detention Center Closing

The shares of CoreCivic Inc. and Target Hospitality Corp. are getting thrashed after US officials moved to close a costly facility used to detain migrants in Dilley, Texas.

CoreCivic, which leases the facility and the site from a third-party lessor, slid as much as 27% Tuesday, extending losses into a second day after US Immigration and Customs Enforcement said it will close the South Texas Family Residential Center. Shares of Target Hospitality, which provides services to the center, fell by a record 42% intraday.

The closure follows President Joe Biden’s June 4 executive order banning migrants who cross ...