Neogen (NASDAQ:NEOG) Shares Down 4.5% - Should You Sell?

Key Points

• Neogen shares fell 4.5% to approximately $13.10 in Tuesday trading, on volume far below the stock’s average session volume.
• Analyst sentiment is mixed: Piper Sandler upgraded the stock to “overweight” with a $14 target, but the broader consensus remains “Hold” with a $12 target price.
• Neogen beat quarterly earnings and revenue expectations, reporting $0.09 EPS and $225.3 million in revenue, while institutional investors own a substantial 96.73% of outstanding shares.

Shares of Neogen Corporation (NASDAQ:NEOG - Get Free Report) traded down 4.5% during trading on Tuesday. The stock traded as low as $13.63 and last traded at $13.1020. 226,700 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 2,776,006 shares. The stock had previously closed at $13.72.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on NEOG. Weiss Ratings upgraded Neogen from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 7th. Piper Sandler upgraded Neogen from a "neutral" rating to an "overweight" rating and upped their target price for the company from $13.00 to $14.00 in a research note on Wednesday, August 26th. Finally, Wall Street Zen downgraded Neogen from a "strong-buy" rating to a "buy" rating in a research report on Sunday, September 20th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Neogen has an average rating of "Hold" and a consensus target price of $12.00.

Neogen Price Performance

The company has a 50 day simple moving average of $11.73 and a 200 day simple moving average of $10.11. The company has a market capitalization of $2.85 billion, a price-to-earnings ratio of -435.13, a price-to-earnings-growth ratio of 5.16 and a beta of 1.76. The company has a quick ratio of 2.91, a current ratio of 3.82 and a debt-to-equity ratio of 0.38.

Neogen (NASDAQ:NEOG - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.03. The business had revenue of $225.30 million during the quarter, compared to analysts' expectations of $212.35 million. Neogen had a positive return on equity of 2.78% and a negative net margin of 0.91%.The company's revenue for the quarter was down .1% on a year-over-year basis. During the same quarter in the previous year, the business earned ($2.82) EPS. As a group, research analysts predict that Neogen Corporation will post 0.27 EPS for the current year.

Institutional Investors Weigh In On Neogen

Large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of Neogen in the second quarter valued at $300,545,000. Dimensional Fund Advisors LP increased its stake in Neogen by 23.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 9,132,021 shares of the company's stock worth $84,831,000 after buying an additional 1,733,767 shares during the period. SG Americas Securities LLC lifted its holdings in Neogen by 287.4% in the 1st quarter. SG Americas Securities LLC now owns 6,266,033 shares of the company's stock worth $58,211,000 after buying an additional 4,648,436 shares in the last quarter. Bamco Inc. NY purchased a new position in Neogen in the 2nd quarter valued at about $45,094,000. Finally, Cibc World Market Inc. acquired a new stake in shares of Neogen during the second quarter valued at about $31,469,000. Institutional investors and hedge funds own 96.73% of the company's stock.

About Neogen

Neogen Corporation develops and markets products and services designed to protect food, animals and people. The company's offerings help customers detect, prevent and manage biological, chemical and physical hazards across the food production, agricultural and animal care industries.

Its food safety portfolio includes test kits and related technologies for detecting pathogens, allergens, mycotoxins, spoilage organisms, veterinary drug residues and other contaminants. Neogen also provides sanitation and hygiene products, diagnostic tools, laboratory services, software and training for food manufacturers, processors, retailers and other organizations involved in the food supply chain.

Neogen's animal safety business serves livestock, poultry, companion animal and veterinary markets.

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.