Neogen (NASDAQ:NEOG) Stock Falls 6.2% - What's Next?

Key Points

• Neogen shares fell 6.2% to about $12.21, with trading volume roughly half the average daily level.
• Analyst sentiment is mixed but improving: Guggenheim and Piper Sandler raised their price targets to $14, while the overall consensus remains “Hold” with an average target of $12.67.
• Neogen exceeded quarterly expectations, reporting $0.09 in EPS versus $0.06 expected and $225.3 million in revenue versus $212.35 million forecast, though revenue dipped slightly year over year and net margin remained negative.

Neogen Corporation (NASDAQ:NEOG - Get Free Report) shares fell 6.2% during trading on Tuesday. The company traded as low as $12.24 and last traded at $12.2090. Approximately 1,448,207 shares traded hands during trading, a decline of 50% from the average session volume of 2,881,252 shares. The stock had previously closed at $13.01.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Guggenheim reissued a "buy" rating and set a $14.00 price objective (up from $12.00) on shares of Neogen in a report on Wednesday, September 30th. Weiss Ratings raised shares of Neogen from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, August 7th. Wall Street Zen upgraded shares of Neogen from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Finally, Piper Sandler raised Neogen from a "neutral" rating to an "overweight" rating and boosted their target price for the stock from $13.00 to $14.00 in a report on Wednesday, August 26th. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $12.67.

Neogen Stock Down 6.3%

The company has a current ratio of 3.82, a quick ratio of 2.91 and a debt-to-equity ratio of 0.38. The firm's fifty day moving average price is $12.02 and its 200-day moving average price is $10.22. The company has a market cap of $2.66 billion, a price-to-earnings ratio of -406.17, a price-to-earnings-growth ratio of 4.56 and a beta of 1.79.

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

Hedge Funds Weigh In On Neogen

Several hedge funds have recently modified their holdings of the stock. Sequoia Financial Advisors LLC bought a new stake in Neogen during the second quarter worth $94,000. Integrated Wealth Concepts LLC bought a new position in Neogen during the second quarter worth about $73,000. Squarepoint Ops LLC bought a new position in Neogen during the second quarter worth about $2,642,000. Nykredit A S acquired a new position in Neogen during the second quarter worth approximately $28,000. Finally, Corient Private Wealth LP raised its stake in Neogen by 9.1% in the second quarter. Corient Private Wealth LP now owns 46,474 shares of the company's stock valued at $418,000 after buying an additional 3,859 shares during the period. Institutional investors own 96.73% of the company's stock.

About Neogen

Neogen Corporation is a global provider of food safety and animal safety products and services. The company develops diagnostic tests, laboratory products, and related solutions that help customers detect foodborne pathogens, allergens, toxins, residues, and other contaminants throughout the food production process.

Its food safety portfolio includes test kits, culture media, molecular testing systems, sanitation monitoring products, and laboratory supplies used by food manufacturers, processors, retailers, and regulatory organizations.

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