Neogen (NASDAQ:NEOG) Shares Down 6.9% - Here's Why

Key Points

• Neogen shares fell 6.9% to about $9.34 on Friday, with 2.78 million shares traded (roughly 18% below average session volume).
• The company beat Q3 estimates—EPS $0.09 vs. $0.04 and revenue $211.2M vs. $204.6M—and raised full‑year revenue guidance to roughly $857M–$860M, with the Food Safety segment cited as the primary growth driver.
• Investors were concerned by worsening profitability—gross margins slid and net margin was a large negative (-68.47%)—plus strain in Animal Safety and supplier issues, resulting in mixed analyst views and a consensus "Hold" rating with an average target of about $10.67.

Shares of Neogen Corporation (NASDAQ:NEOG - Get Free Report) traded down 6.9% on Friday . The stock traded as low as $9.41 and last traded at $9.3360. 2,784,250 shares traded hands during trading, a decline of 18% from the average session volume of 3,383,796 shares. The stock had previously closed at $10.03.

Neogen News Roundup

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Q3 results beat consensus — EPS of $0.09 vs. ~$0.04 estimate and revenue of $211.2M vs. ~$204.6M, showing the core business still generates demand. NEOG beats Q3 estimates
• Positive Sentiment: Company raised full‑year revenue guidance to roughly $857M–$860M, above consensus, signaling management expects recovery/strength in core areas. Press release: Q3 results & guidance
• Positive Sentiment: Food Safety segment remains a growth driver and was cited repeatedly as the source of strength on the quarter. Yahoo: Strong Q1/CY2026 numbers
• Neutral Sentiment: Earnings call emphasized a cautious transformation plan and operational stabilization efforts — management is balancing near‑term pressures with multi‑quarter fixes. Earnings call transcript
• Negative Sentiment: Gross margins and overall profitability deteriorated; headlines note a slump in margins and a very large negative net margin figure that worried investors. Zacks: Gross margin down
• Negative Sentiment: Animal Safety / non‑core areas are under strain and cited as a drag; Barron's and others highlight third‑party setbacks and segment weakness that weighed on sentiment despite the beat. Barron's: Guidance hike & animal safety drag
• Negative Sentiment: Supplier challenges caused a year‑over‑year revenue decline and contributed to investor concern about near‑term execution and margins. MarketWatch: Supplier challenges

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. Wall Street Zen raised Neogen from a "hold" rating to a "buy" rating in a research note on Saturday, February 14th. Guggenheim reissued a "buy" rating and set a $12.00 target price (up from $8.00) on shares of Neogen in a research note on Friday, January 9th. Piper Sandler reissued a "neutral" rating and set a $10.00 target price (up from $6.50) on shares of Neogen in a research note on Monday, January 12th. William Blair reissued a "market perform" rating on shares of Neogen in a research note on Monday, March 2nd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Neogen in a research note on Monday, December 29th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $10.67.

Neogen Stock Down 6.1%

The business's 50 day moving average is $10.09 and its 200 day moving average is $7.99. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.80 and a current ratio of 3.91. The stock has a market cap of $2.05 billion, a price-to-earnings ratio of -3.40 and a beta of 1.97.

Neogen (NASDAQ:NEOG - Get Free Report) last posted its quarterly earnings data on Thursday, April 9th. The company reported $0.09 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.05. Neogen had a negative net margin of 68.47% and a positive return on equity of 2.14%. The firm had revenue of $211.20 million during the quarter, compared to analyst estimates of $204.62 million. The business's quarterly revenue was down 4.4% compared to the same quarter last year. Equities analysts expect that Neogen Corporation will post 0.38 earnings per share for the current year.

Institutional Investors Weigh In On Neogen

Several hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in Neogen by 1.6% in the 3rd quarter. Vanguard Group Inc. now owns 23,963,223 shares of the company's stock worth $136,830,000 after acquiring an additional 385,885 shares in the last quarter. ING Groep NV purchased a new stake in Neogen in the 3rd quarter worth about $80,288,000. T. Rowe Price Investment Management Inc. lifted its stake in Neogen by 249.2% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 8,181,768 shares of the company's stock worth $57,191,000 after acquiring an additional 5,838,570 shares in the last quarter. Mackenzie Financial Corp lifted its stake in Neogen by 1.0% in the 4th quarter. Mackenzie Financial Corp now owns 7,898,439 shares of the company's stock worth $55,574,000 after acquiring an additional 79,010 shares in the last quarter. Finally, Cibc World Markets Corp purchased a new stake in Neogen in the 4th quarter worth about $47,983,000. 96.73% of the stock is owned by hedge funds and other institutional investors.

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.