Zacks Investment Research upgraded shares of Neogen (NASDAQ:NEOG) from a sell rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “Over the past year, shares of Neogen outperformed its industry. However, the company exited first quarter fiscal 2019 on a mixed note with earnings ahead of the Zacks Consensus Estimate and revenues missing the mark. Tough competition and pricing pressure also weigh on the stock. Escalating expenses put pressure on margins. Moreover, valuation looks stretched at this moment. However, the company continues to report robust revenue performance banking on balanced growth across all segments. Neogen is currently progressing well with the integration process related to several new acquisitions within its genomics business including recent purchase of laboratories in Brazil and Australia. Internationally, Neogen is expanding its business quite rapidly. The company witnessed growing revenues in Europe, Brazil, Mexico, China and India along with other geographies in the reported quarter. It has established a laboratory in Shanghai, China.”
Other analysts have also issued research reports about the company. ValuEngine lowered Neogen from a strong-buy rating to a buy rating in a research note on Wednesday, September 26th. BidaskClub raised Neogen from a sell rating to a hold rating in a research note on Tuesday, November 13th. Five equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. Neogen presently has a consensus rating of Hold and a consensus target price of $67.75.
Neogen (NASDAQ:NEOG) last announced its quarterly earnings results on Tuesday, September 25th. The company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.01. Neogen had a return on equity of 12.06% and a net margin of 16.35%. The company had revenue of $99.60 million during the quarter, compared to analyst estimates of $104.43 million. During the same quarter last year, the firm posted $0.31 earnings per share. The firm’s revenue was up 5.7% on a year-over-year basis. On average, research analysts forecast that Neogen will post 1.24 EPS for the current fiscal year.
Neogen announced that its Board of Directors has approved a share repurchase program on Wednesday, October 10th that allows the company to repurchase 3,000,000 shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.
In related news, insider James L. Herbert sold 24,000 shares of the firm’s stock in a transaction on Thursday, August 30th. The stock was sold at an average price of $89.37, for a total value of $2,144,880.00. Following the completion of the sale, the insider now owns 760,226 shares of the company’s stock, valued at $67,941,397.62. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Steven J. Quinlan sold 3,600 shares of the firm’s stock in a transaction on Thursday, August 30th. The stock was sold at an average price of $89.08, for a total value of $320,688.00. Following the completion of the sale, the chief financial officer now directly owns 17,070 shares of the company’s stock, valued at approximately $1,520,595.60. The disclosure for this sale can be found here. Insiders sold 60,135 shares of company stock valued at $4,688,645 in the last ninety days. 3.00% of the stock is currently owned by insiders.
A number of institutional investors have recently made changes to their positions in the business. Morgan Stanley lifted its position in Neogen by 26.7% during the third quarter. Morgan Stanley now owns 209,329 shares of the company’s stock valued at $14,973,000 after buying an additional 44,131 shares during the period. Legal & General Group Plc lifted its position in Neogen by 8.0% during the third quarter. Legal & General Group Plc now owns 120,106 shares of the company’s stock valued at $8,554,000 after buying an additional 8,895 shares during the period. Teachers Advisors LLC lifted its position in Neogen by 8.4% during the third quarter. Teachers Advisors LLC now owns 103,200 shares of the company’s stock valued at $7,382,000 after buying an additional 8,004 shares during the period. Neuberger Berman Group LLC lifted its position in Neogen by 1.7% during the third quarter. Neuberger Berman Group LLC now owns 659,947 shares of the company’s stock valued at $47,206,000 after buying an additional 10,805 shares during the period. Finally, AQR Capital Management LLC lifted its position in Neogen by 75.9% during the third quarter. AQR Capital Management LLC now owns 32,867 shares of the company’s stock valued at $2,351,000 after buying an additional 14,186 shares during the period. 87.79% of the stock is owned by institutional investors and hedge funds.
Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment primarily offers diagnostic test kits and complementary to detect dangerous and/or unintended substances in human food and animal feed, such as 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 for adenosine triphosphate, a chemical found in living cells.
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