Neo Performance Materials (TSE:NEO) Trading Down 9.1% - Time to Sell?

Key Points

• Neo Performance Materials shares fell 9.1% to C$40.28, with trading volume below its average. Despite the decline, the stock remains above its 50-day and 200-day moving averages.
• Analysts remain broadly bullish: all four covering analysts rate the stock a Buy, while the average price target is C$50.50. Recent targets range from C$38.00 to C$60.00.
• The company reported C$292.32 million in quarterly revenue and C$0.73 in earnings per share, but posted a negative net margin and return on equity. It also pays a quarterly dividend of C$0.10, implying a 1.0% annual yield.

Neo Performance Materials Inc. (TSE:NEO - Get Free Report) shares were down 9.1% on Tuesday . The stock traded as low as C$40.28 and last traded at C$40.28. Approximately 229,572 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 285,439 shares. The stock had previously closed at C$44.33.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on NEO. BMO Capital Markets lifted their price target on shares of Neo Performance Materials from C$43.00 to C$60.00 in a research report on Monday, July 13th. ATB Cormark Capital Markets raised their price objective on Neo Performance Materials from C$43.00 to C$53.50 and gave the stock an "outperform" rating in a research note on Friday, July 10th. Finally, Stifel Nicolaus lifted their target price on Neo Performance Materials from C$26.00 to C$38.00 in a report on Wednesday, May 13th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of "Buy" and an average price target of C$50.50.

Neo Performance Materials Trading Down 12.0%

The company has a current ratio of 1.76, a quick ratio of 1.92 and a debt-to-equity ratio of 41.75. The firm has a market capitalization of C$1.80 billion, a P/E ratio of -162.62 and a beta of 1.44. The business has a 50 day moving average of C$36.54 and a 200-day moving average of C$28.81.

Neo Performance Materials (TSE:NEO - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported C$0.73 earnings per share for the quarter. The firm had revenue of C$292.32 million for the quarter. Neo Performance Materials had a negative net margin of 2.03% and a negative return on equity of 2.63%. Analysts anticipate that Neo Performance Materials Inc. will post 0.6753356 EPS for the current fiscal year.

Neo Performance Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 29th. Investors of record on Monday, June 29th were given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Friday, June 19th. Neo Performance Materials's payout ratio is currently -120.72%.

About Neo Performance Materials

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials - magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys - are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals.

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