Neogen (NASDAQ:NEOG) Shares Rise 5.9% - What's Next?

Neogen Corporation (NASDAQ:NEOG) experienced a notable increase of 5.9% in its stock price during trading on Thursday. The shares peaked at $8.93 before closing at that same price. A total of 1,404,961 shares exchanged hands, which was down 35% compared to the average trading volume of 2,148,215 shares. Previously, the stock closed at $8.43.

Positive Analyst Overview

Diverse insights from Wall Street analysts regarding Neogen have emerged lately. Piper Sandler reaffirmed a "neutral" rating and adjusted the price target down from $16.50 to $13.00 in a report released on January 21st. Conversely, Guggenheim initiated coverage with a "buy" rating, establishing a target price of $15.00. These perspectives may shift the market's expectation of the company's future performance.

Neogen's Financial Metrics

The company's financial ratios are as follows: a debt-to-equity ratio of 0.33, a current ratio of 3.77, and a quick ratio of 2.46. With a market capitalization of approximately $1.94 billion, Neogen has a 50-day simple moving average price of $10.25 and a 200-day simple moving average of $12.83. The stock's price-to-earnings (P/E) ratio stands at -4.08, indicating a potential concern regarding its earnings.

Neogen recently shared its quarterly earnings data on January 10th. The company reported earnings per share (EPS) of $0.11, surpassing analysts' expected loss of $0.01 by $0.12. Revenue for the quarter totaled $231.30 million, slightly ahead of the forecast which was $227.16 million. Compared to the same quarter last year, revenue increased by 0.7%, while the return on equity was 2.89%. However, the net margin was reported at a negative 52.12%.

Insider Activity

Recent insider transactions also highlight growing confidence in the company's stock. On January 16th, CFO David H. Naemura purchased 14,800 shares at an average price of $11.11 each, totaling approximately $164,428. Following this acquisition, he now holds 61,434 shares valued at nearly $682,532, representing a 31.74% ownership increase. CEO John Edward Adent also bought 23,035 shares on the same day at an average cost of $11.03 per share, valued at around $254,076. This purchase raised his total share ownership to 269,164, worth about $2,968,879, marking a 9.36% increase. Insiders currently own about 1.13% of the company's stock.

Institutional Investment Trends

Several institutional investors have been active in buying and selling Neogen shares recently. Harbour Investments Inc. acquired a new position in Neogen during the fourth quarter, valued at approximately $27,000. Additionally, Blue Trust Inc. increased its holdings by 196.7% in the same timeframe, owning 3,368 shares worth about $41,000 after purchasing an extra 2,233 shares. Johnson Financial Group also established a new stake valued at roughly $43,000, while Neo Ivy Capital Management entered the market with a stake valued at $66,000 during the third quarter. Meanwhile, Covestor Ltd raised its holdings by 41.4% during the fourth quarter and now owns 4,103 shares valued at around $50,000. Approximately 96.73% of Neogen's stock is currently held by institutional and hedge fund investors.

About Neogen

Neogen Corporation is involved in the development, production, and marketing of a variety of products and services aimed at ensuring food and animal safety globally. The company operates in two main segments: Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products designed to detect both harmful and unintended substances in food and animal feed. This includes foodborne pathogens, spoilage organisms, various toxins, food allergens, and other safety measurements. Furthermore, the company provides genomic-based diagnostic technologies and software systems that facilitate the analysis and storage of results from multiple testing locations over extended periods.

Further Considerations

Investors are encouraged to review Neogen’s potential growth against its competitors. Despite a moderate buy rating among analysts, many believe other stocks currently promise better returns.

For those contemplating an investment in Neogen, it may be beneficial to research further regarding market trends and potential future performance.

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