Neogen (NASDAQ:NEOG) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Neogen from "buy" to "hold"; the stock's consensus is now "Hold" with an average target price of $10.67 (analyst split: 2 Buy, 3 Hold, 1 Sell).
• Q3 beat estimates — EPS $0.09 vs. $0.04 and revenue $211.2M vs. $204.6M — and management raised full‑year revenue guidance to ~$857–$860M, but sharp margin weakness (net margin ~-69.9%), supplier/Animal Safety issues and a 4.4% YoY revenue decline spurred a ~6.1% stock drop.

Neogen (NASDAQ:NEOG - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

A number of other equities analysts have also recently weighed in on NEOG. William Blair reiterated a "market perform" rating on shares of Neogen in a report on Monday, March 2nd. Piper Sandler reiterated a "neutral" rating and set a $10.00 price target (up from $6.50) on shares of Neogen in a report on Monday, January 12th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Neogen in a report on Monday, December 29th. Finally, Guggenheim reiterated a "buy" rating and set a $12.00 price target (up from $8.00) on shares of Neogen in a report on Friday, January 9th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Neogen presently has an average rating of "Hold" and a consensus target price of $10.67.

Neogen Stock Down 6.1%

Shares of NEOG opened at $9.42 on Friday. Neogen has a 52-week low of $4.32 and a 52-week high of $11.43. The company has a market capitalization of $2.05 billion, a PE ratio of -3.36 and a beta of 1.97. The stock has a fifty day simple moving average of $10.07 and a two-hundred day simple moving average of $8.01. The company has a quick ratio of 2.80, a current ratio of 3.92 and a debt-to-equity ratio of 0.38.

Neogen (NASDAQ:NEOG - Get Free Report) last released its quarterly earnings results on Thursday, April 9th. The company reported $0.09 earnings per share for the quarter, topping analysts' consensus estimates of $0.04 by $0.05. The business had revenue of $211.20 million during the quarter, compared to analysts' expectations of $204.62 million. Neogen had a positive return on equity of 2.35% and a negative net margin of 69.93%.The firm's quarterly revenue was down 4.4% on a year-over-year basis. As a group, equities analysts forecast that Neogen will post 0.38 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. UMB Bank n.a. boosted its stake in shares of Neogen by 238.2% in the fourth quarter. UMB Bank n.a. now owns 6,422 shares of the company's stock valued at $45,000 after buying an additional 4,523 shares in the last quarter. Hantz Financial Services Inc. boosted its stake in shares of Neogen by 816.9% in the fourth quarter. Hantz Financial Services Inc. now owns 7,592 shares of the company's stock valued at $53,000 after buying an additional 6,764 shares in the last quarter. Cresset Asset Management LLC purchased a new stake in shares of Neogen in the second quarter valued at approximately $53,000. Evergreen Capital Management LLC purchased a new stake in shares of Neogen in the second quarter valued at approximately $56,000. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Neogen by 3,158.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 8,309 shares of the company's stock valued at $58,000 after buying an additional 8,054 shares in the last quarter. 96.73% of the stock is currently owned by hedge funds and other institutional investors.

More Neogen News

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Q3 beat on the top and bottom lines: EPS $0.09 vs. consensus ~$0.04 and revenue $211.2M vs. ~$204.6M — evidence core operations (especially Food Safety) are growing. NEOG Beats Q3 Estimates
• Positive Sentiment: Management raised full‑year revenue guidance to about $857–$860M (above consensus ~$850.6M), giving some forward support to revenue expectations. Press Release
• Neutral Sentiment: Food Safety segment is cited repeatedly as the growth engine; investor focus will be on whether that strength can offset weakness elsewhere. Q1/Q3 Coverage
• Neutral Sentiment: Company held an earnings call with prepared slides and a transcript — useful for tracking management comments on supply‑chain fixes and margins. Earnings Call Transcript
• Negative Sentiment: Gross margins and profitability disappointed: revenue down ~4.4% YoY and reported negative net margin metrics (company cited margin pressure and third‑party/supplier constraints). That margin weakness is the main reason the stock sold off. Margins Down
• Negative Sentiment: Animal Safety business remains a drag due to third‑party setbacks and supply issues; analysts and Barron’s flagged that a guidance hike plus an earnings beat didn’t calm investor concerns. Barron's Analysis
• Negative Sentiment: Short‑term outlook risk: if margin recovery and supplier fixes take longer than management expects, upside from the revenue beat and guidance could be limited, keeping pressure on the stock. MarketWatch Coverage

About Neogen

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.