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

Neogen Co. (NASDAQ:NEOG) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $7.04, but opened at $5.50. Neogen shares last traded at $4.63, with a volume of 7,150,616 shares changing hands.

The company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.02). The firm had revenue of $221.00 million for the quarter, compared to analyst estimates of $225.27 million. Neogen had a positive return on equity of 2.89% and a negative net margin of 52.12%. The firm’s revenue was down 3.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.12 EPS.

Analyst Ratings Changes

Several research analysts have commented on NEOG shares. Piper Sandler reaffirmed a “neutral” rating and issued a $13.00 price target (down from $16.50) on shares of Neogen in a research report on Tuesday, January 21st. Guggenheim lowered their price objective on shares of Neogen from $15.00 to $13.00 and set a “buy” rating on the stock in a research note on Thursday.

Insider Activity at Neogen

In other Neogen news, CFO David H. Naemura purchased 14,800 shares of the company’s stock in a transaction that occurred on Thursday, January 16th. The stock was purchased at an average price of $11.11 per share, with a total value of $164,428.00. Following the completion of the transaction, the chief financial officer now directly owns 61,434 shares of the company’s stock, valued at approximately $682,531.74. This trade represents a 31.74 % increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO John Patrick Moylan purchased 10,000 shares of the business’s stock in a transaction on Thursday, April 10th. The shares were acquired at an average price of $5.07 per share, with a total value of $50,700.00. Following the purchase, the chief accounting officer now owns 10,000 shares of the company’s stock, valued at approximately $50,700. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 47,835 shares of company stock worth $469,204. Company insiders own 1.13% of the company’s stock.

Hedge Funds Weigh In On Neogen

A number of hedge funds have recently modified their holdings of NEOG. Norges Bank bought a new stake in Neogen during the fourth quarter worth about $212,171,000. Clarkston Capital Partners LLC bought a new stake in Neogen during the 4th quarter worth approximately $34,801,000. Vanguard Group Inc. increased its holdings in Neogen by 9.8% during the 4th quarter. Vanguard Group Inc. now owns 21,637,251 shares of the company’s stock valued at $262,676,000 after purchasing an additional 1,928,491 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its position in Neogen by 27.2% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 7,114,702 shares of the company’s stock valued at $86,373,000 after purchasing an additional 1,521,560 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in Neogen by 24.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 6,939,984 shares of the company’s stock worth $84,254,000 after purchasing an additional 1,345,056 shares in the last quarter. 96.73% of the stock is owned by institutional investors and hedge funds.

Neogen Stock Up 12.2 %

The company has a market cap of $1.22 billion, a P/E ratio of -2.57 and a beta of 1.57. The company has a quick ratio of 2.46, a current ratio of 3.77 and a debt-to-equity ratio of 0.33. The firm has a fifty day moving average price of $9.18 and a 200 day moving average price of $12.04.

About Neogen

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.