Neogen Corporation $NEOG Position Boosted by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors increased its Neogen position by 23.4% in the first quarter, bringing its holdings to 9.13 million shares, or 4.2% of the company. Institutional investors collectively own 96.73% of Neogen.
• Neogen exceeded fiscal fourth-quarter expectations, reporting $0.09 in EPS versus the $0.05 consensus and revenue of $225.3 million versus $212.35 million expected. However, revenue was essentially flat year over year, while planned 50% higher R&D spending could pressure near-term margins.
• Management issued an above-consensus fiscal 2027 outlook, forecasting revenue of $880 million to $885 million and adjusted EBITDA of $180 million to $182 million. Analysts maintain a consensus “Hold” rating with a $10.67 target price, while shares recently traded near $11.53.

Dimensional Fund Advisors LP boosted its holdings in Neogen Corporation (NASDAQ:NEOG - Free Report) by 23.4% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 9,132,021 shares of the company's stock after acquiring an additional 1,733,767 shares during the quarter. Dimensional Fund Advisors LP owned 4.20% of Neogen worth $84,831,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Huntington National Bank increased its stake in shares of Neogen by 8.4% during the fourth quarter. Huntington National Bank now owns 13,552 shares of the company's stock valued at $95,000 after acquiring an additional 1,045 shares during the period. ProShare Advisors LLC lifted its position in Neogen by 3.2% in the fourth quarter. ProShare Advisors LLC now owns 42,509 shares of the company's stock worth $297,000 after purchasing an additional 1,331 shares during the period. State of Alaska Department of Revenue lifted its position in Neogen by 1.2% in the fourth quarter. State of Alaska Department of Revenue now owns 110,645 shares of the company's stock worth $773,000 after purchasing an additional 1,353 shares during the period. Evergreen Capital Management LLC boosted its stake in Neogen by 12.3% during the 4th quarter. Evergreen Capital Management LLC now owns 13,753 shares of the company's stock valued at $96,000 after purchasing an additional 1,504 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its stake in Neogen by 10.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 17,837 shares of the company's stock valued at $125,000 after purchasing an additional 1,638 shares in the last quarter. Institutional investors own 96.73% of the company's stock.

Key Stories Impacting Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Quarterly results exceeded expectations: Neogen reported fiscal Q4 earnings of $0.09 per share, versus the $0.05 consensus estimate, while revenue of $225.3 million surpassed expectations of $212.35 million. The earnings result also improved substantially from the prior-year loss. Neogen Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Above-consensus outlook: Management forecast fiscal 2027 revenue of $880 million to $885 million, well above the roughly $851.1 million analyst consensus. First-quarter fiscal 2027 revenue guidance of $207 million to $209 million also topped the $204.9 million consensus. The company outlined adjusted EBITDA guidance of $180 million to $182 million for fiscal 2027. Neogen Fiscal 2027 Outlook
• Neutral Sentiment: Investment may weigh on near-term profitability: Neogen plans to increase research and development spending by about 50%, signaling continued investment in future growth but potentially limiting margin expansion in the near term. Neogen Q4 Earnings Call Transcript
• Negative Sentiment: Revenue growth remained muted: Fiscal Q4 revenue was essentially flat year over year, declining 0.1%, so the stock’s positive reaction depends heavily on the earnings beat and forward guidance rather than current top-line growth.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on NEOG. Wall Street Zen raised Neogen from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Weiss Ratings cut Neogen from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, July 24th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $10.67.

Neogen Trading Up 22.7%

Shares of NASDAQ:NEOG opened at $11.53 on Friday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.84 and a current ratio of 3.92. The stock has a market capitalization of $2.51 billion, a price-to-earnings ratio of -4.12, a PEG ratio of 4.21 and a beta of 1.80. Neogen Corporation has a 1-year low of $4.56 and a 1-year high of $11.56. The company has a 50 day moving average price of $9.37 and a 200 day moving average price of $9.60.

Neogen (NASDAQ:NEOG - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.04. Neogen had a positive return on equity of 2.35% and a negative net margin of 69.93%.The company had revenue of $225.30 million for the quarter, compared to analysts' expectations of $212.35 million. During the same quarter in the prior year, the company earned ($2.82) earnings per share. The firm's revenue was down .1% on a year-over-year basis. On average, research analysts anticipate that Neogen Corporation will post 0.23 EPS for the current fiscal year.

Neogen Company Profile

Neogen Corporation is a global provider of food and animal safety products, offering a broad portfolio of diagnostic and testing solutions. Headquartered in Lansing, Michigan, the company develops and manufactures tests designed to detect foodborne pathogens, allergens and toxins in food, beverage and environmental samples. Since its founding in 1982, Neogen has focused on delivering rapid, accurate and user‐friendly assays to food processors, grain handlers and quality laboratories around the world.

In the food safety arena, Neogen's product lineup includes immunoassay kits, molecular diagnostics and enrichment media for pathogens such as Salmonella, Listeria and E.

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