Gates Capital Management Inc. Buys New Shares in Neogen Corporation $NEOG

Key Points

• Gates Capital Management Inc. recently acquired 9,156,922 shares of Neogen Corporation, valued at approximately $79.39 million, making it the 20th largest holding in their investment portfolio.
• Other institutional investors, such as Clarkston Capital Partners LLC and Vanguard Group Inc., have also significantly increased their positions in Neogen, indicating strong institutional interest in the company.
• Neogen's current stock rating is a "Hold" with a consensus price target of $7.50, down from previous evaluations, reflecting some caution among analysts about the stock's future performance.

Gates Capital Management Inc. purchased a new position in shares of Neogen Corporation (NASDAQ:NEOG - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 9,156,922 shares of the company's stock, valued at approximately $79,391,000. Neogen accounts for approximately 1.6% of Gates Capital Management Inc.'s investment portfolio, making the stock its 20th biggest holding. Gates Capital Management Inc. owned approximately 4.22% of Neogen as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also made changes to their positions in NEOG. Bank Pictet & Cie Europe AG boosted its holdings in shares of Neogen by 6.5% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 132,000 shares of the company's stock worth $1,602,000 after purchasing an additional 8,000 shares during the period. Tower Research Capital LLC TRC boosted its holdings in shares of Neogen by 247.7% during the fourth quarter. Tower Research Capital LLC TRC now owns 21,086 shares of the company's stock worth $256,000 after purchasing an additional 15,022 shares during the period. Stifel Financial Corp boosted its holdings in shares of Neogen by 28.7% during the fourth quarter. Stifel Financial Corp now owns 24,784 shares of the company's stock worth $301,000 after purchasing an additional 5,534 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in shares of Neogen by 12.1% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 139,373 shares of the company's stock worth $1,692,000 after purchasing an additional 15,048 shares during the period. Finally, Aristeia Capital L.L.C. lifted its stake in Neogen by 84.4% in the fourth quarter. Aristeia Capital L.L.C. now owns 39,639 shares of the company's stock valued at $481,000 after acquiring an additional 18,145 shares during the last quarter. 96.73% of the stock is currently owned by institutional investors and hedge funds.

Neogen Stock Performance

Shares of Neogen stock traded up $0.08 on Wednesday, reaching $5.72. The stock had a trading volume of 2,911,545 shares, compared to its average volume of 5,128,184. The business's 50-day moving average price is $5.20 and its two-hundred day moving average price is $6.39. The company has a debt-to-equity ratio of 0.42, a quick ratio of 2.22 and a current ratio of 3.32. Neogen Corporation has a fifty-two week low of $3.87 and a fifty-two week high of $17.95. The stock has a market cap of $1.24 billion, a P/E ratio of -1.14 and a beta of 1.85.

Analysts Set New Price Targets

A number of analysts have issued reports on NEOG shares. William Blair cut shares of Neogen from an "outperform" rating to a "market perform" rating in a research note on Tuesday, July 29th. Guggenheim reduced their target price on shares of Neogen from $13.00 to $10.00 and set a "buy" rating for the company in a research note on Monday, June 30th. Finally, Zacks Research upgraded shares of Neogen from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 20th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Neogen currently has a consensus rating of "Hold" and a consensus price target of $7.50.

Neogen Company Profile

Neogen Corporation, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells, as well as provides genomics-based diagnostic technology and software systems that help testers to objectively analyze and store their results and perform analysis on the results from multiple locations over extended periods.