Neogen (NEOG) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Neogen (NASDAQ:NEOG) from a hold rating to a sell rating in a report published on Monday morning, Zacks.com reports.

According to Zacks, “Neogen has underperformed its industry over the past six months. The company’s Animal Safety segment is currently displaying poor performance. Chaotic economic conditions in the production animal market, the U.S.-China trade war along with lower sales to animal protein market distributor partners are hampering growth. Moreover, negative currency movement continue to be a concern. Neogen’s strength in international business and solid performance by the core Food Safety and genomic product lines resulted in year-over-year revenue growth in the last-reported quarter. The quarter marked the 108th of the past 113 quarters of year-over-year revenue increase. Per management, the company witnessed revenue growth in Europe, Brazil, Mexico, China and India along with other geographies in the quarter under review.We are also upbeat about Neogen’s recent launch of coconut food allergen test kits”

Several other research analysts also recently commented on NEOG. ValuEngine upgraded Neogen from a hold rating to a buy rating in a research note on Thursday, January 24th. BidaskClub downgraded Neogen from a hold rating to a sell rating in a research note on Thursday, January 31st. Finally, Craig Hallum upgraded Neogen from a hold rating to a buy rating and set a $62.76 target price for the company in a research note on Tuesday, March 19th. One analyst has rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the stock. The stock has an average rating of Hold and an average target price of $62.76.

Shares of NASDAQ NEOG opened at $58.23 on Monday. Neogen has a 12 month low of $50.60 and a 12 month high of $97.38. The company has a market cap of $3.03 billion, a PE ratio of 48.12, a price-to-earnings-growth ratio of 5.17 and a beta of 1.33.

Neogen (NASDAQ:NEOG) last issued its earnings results on Tuesday, March 26th. The company reported $0.25 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.27 by ($0.02). Neogen had a return on equity of 10.48% and a net margin of 14.96%. The business had revenue of $97.70 million for the quarter, compared to the consensus estimate of $102.55 million. During the same quarter in the prior year, the firm posted $0.32 earnings per share. The business’s revenue was up 3.0% compared to the same quarter last year. On average, research analysts anticipate that Neogen will post 1.12 earnings per share for the current fiscal year.

In related news, Director Jack C. Parnell sold 9,883 shares of the business’s stock in a transaction on Monday, April 1st. The stock was sold at an average price of $56.98, for a total value of $563,133.34. Following the completion of the sale, the director now directly owns 18,655 shares in the company, valued at approximately $1,062,961.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William T. Boehm sold 4,000 shares of the business’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $60.85, for a total value of $243,400.00. Following the completion of the sale, the director now owns 14,479 shares of the company’s stock, valued at $881,047.15. The disclosure for this sale can be found here. Insiders sold a total of 83,385 shares of company stock valued at $4,837,655 over the last 90 days. 3.00% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brand Asset Management Group Inc. bought a new stake in Neogen in the 1st quarter valued at $39,000. First Hawaiian Bank bought a new stake in Neogen in the 4th quarter valued at $26,000. Manchester Capital Management LLC boosted its stake in Neogen by 105.6% in the 1st quarter. Manchester Capital Management LLC now owns 590 shares of the company’s stock valued at $34,000 after purchasing an additional 303 shares during the period. Buffington Mohr McNeal bought a new stake in Neogen in the 1st quarter valued at $43,000. Finally, Captrust Financial Advisors boosted its stake in Neogen by 47.0% in the 4th quarter. Captrust Financial Advisors now owns 970 shares of the company’s stock valued at $55,000 after purchasing an additional 310 shares during the period. Institutional investors and hedge funds own 89.01% of the company’s stock.

Neogen Company Profile

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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