Neogen (NASDAQ:NEOG) Shares Gap Down After Earnings Miss

Key Points

• Neogen Corporation shares gapped down to $4.96 after reporting disappointing earnings, with earnings per share at $0.03, missing the consensus estimate by $0.06.
• Analysts at Piper Sandler and Guggenheim have lowered their target prices for Neogen, reflecting a neutral stance and a reduced buy rating, respectively.
• Insider activity saw Director Aashima Gupta acquire 16,000 shares, representing a significant increase in ownership, highlighting confidence amid recent performance struggles.

Neogen Corporation (NASDAQ:NEOG - Get Free Report) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $5.42, but opened at $4.96. Neogen shares last traded at $4.97, with a volume of 1,091,200 shares trading hands.

The company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.06). The business had revenue of $225.46 million for the quarter, compared to the consensus estimate of $222.52 million. Neogen had a negative net margin of 122.06% and a positive return on equity of 2.39%.

Analysts Set New Price Targets

A number of brokerages have issued reports on NEOG. Piper Sandler reduced their price objective on Neogen from $6.40 to $5.00 and set a "neutral" rating for the company in a research note on Tuesday, April 22nd. Guggenheim decreased their target price on shares of Neogen from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, June 30th. Finally, William Blair downgraded Neogen from an "outperform" rating to a "market perform" rating in a research report on Tuesday.

Insider Transactions at Neogen

In related news, Director Aashima Gupta purchased 16,000 shares of the company's stock in a transaction dated Monday, May 12th. The shares were purchased at an average cost of $6.25 per share, with a total value of $100,000.00. Following the transaction, the director directly owned 21,917 shares in the company, valued at $136,981.25. This trade represents a 270.41% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.13% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank Pictet & Cie Europe AG increased its stake in shares of Neogen by 6.5% in the 4th 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 in the last quarter. Commonwealth Equity Services LLC raised its stake in Neogen by 6.1% during the 4th quarter. Commonwealth Equity Services LLC now owns 39,263 shares of the company's stock valued at $477,000 after purchasing an additional 2,267 shares during the period. KLP Kapitalforvaltning AS purchased a new position in shares of Neogen in the fourth quarter worth $503,000. LPL Financial LLC lifted its stake in Neogen by 17.0% in the 4th quarter. LPL Financial LLC now owns 179,133 shares of the company's stock worth $2,107,000 after purchasing an additional 26,002 shares in the last quarter. Finally, Vanguard Group Inc. boosted its stake in Neogen by 9.8% during the fourth quarter. Vanguard Group Inc. now owns 21,637,251 shares of the company's stock valued at $262,676,000 after buying an additional 1,928,491 shares during the last quarter. 96.73% of the stock is owned by institutional investors.

Neogen Stock Down 2.7%

The company has a current ratio of 3.32, a quick ratio of 2.45 and a debt-to-equity ratio of 0.42. The business has a 50-day moving average price of $5.30 and a 200 day moving average price of $7.38. The stock has a market capitalization of $1.02 billion, a P/E ratio of -0.93 and a beta of 1.77.

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.