Neogen Corp. (NASDAQ: NEOG)’s stock price has dropped by -2.99 in relation to previous closing price of 12.38. Nevertheless, the company has seen a loss of -16.48% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-14 that Neogen’s acquisition of 3M’s food safety operations has done far more harm than good in the short term, as integration issues have undermined financial performance and credibility with investors. The company’s disappointing FQ3’24 results and ongoing operating inefficiencies have led to another cut in guidance for revenue and EBITDA, and the shares are near a 52-week low. These integration challenges won’t go on forever, and Neogen will emerge as a larger, stronger player in the global food safety market.
Is It Worth Investing in Neogen Corp. (NASDAQ: NEOG) Right Now?
The price-to-earnings ratio for Neogen Corp. (NASDAQ: NEOG) is above average at 1668.06x. The 36-month beta value for NEOG is also noteworthy at 1.16. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 7 rating it as “hold,” and 0 rating it as “sell.”
The public float for NEOG is 216.25M, and at present, short sellers hold a 7.73% of that float. The average trading volume of NEOG on April 16, 2024 was 2.07M shares.
NEOG’s Market Performance
NEOG’s stock has seen a -16.48% decrease for the week, with a -21.25% drop in the past month and a -33.94% fall in the past quarter. The volatility ratio for the week is 6.11%, and the volatility levels for the past 30 days are at 3.81% for Neogen Corp. The simple moving average for the last 20 days is -17.35% for NEOG’s stock, with a simple moving average of -34.42% for the last 200 days.
Analysts’ Opinion of NEOG
Many brokerage firms have already submitted their reports for NEOG stocks, with Wells Fargo repeating the rating for NEOG by listing it as a “Overweight.” The predicted price for NEOG in the upcoming period, according to Wells Fargo is $22 based on the research report published on June 16, 2023 of the previous year 2023.
Piper Sandler gave a rating of “Neutral” to NEOG, setting the target price at $25 in the report published on July 12th of the previous year.
NEOG Trading at -23.80% from the 50-Day Moving Average
After a stumble in the market that brought NEOG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -50.16% of loss for the given period.
Volatility was left at 3.81%, however, over the last 30 days, the volatility rate increased by 6.11%, as shares sank -20.88% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -21.50% lower at present.
During the last 5 trading sessions, NEOG fell by -16.48%, which changed the moving average for the period of 200-days by -44.24% in comparison to the 20-day moving average, which settled at $14.37. In addition, Neogen Corp. saw -40.28% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at NEOG starting from BOREL JAMES C, who purchase 7,500 shares at the price of $13.06 back on Apr 11 ’24. After this action, BOREL JAMES C now owns 21,392 shares of Neogen Corp., valued at $97,986 using the latest closing price.
ADENT JOHN EDWARD, the CEO of Neogen Corp., purchase 23,000 shares at $12.36 during a trade that took place back on Apr 10 ’24, which means that ADENT JOHN EDWARD is holding 152,389 shares at $284,190 based on the most recent closing price.
Stock Fundamentals for NEOG
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.51 for the gross margin
The net margin for Neogen Corp. stands at 0.0. The total capital return value is set at 0.02. Equity return is now at value 0.05, with 0.03 for asset returns.
Based on Neogen Corp. (NEOG), the company’s capital structure generated 0.22 points at debt to capital in total, while cash flow to debt ratio is standing at 0.11. The debt to equity ratio resting at 0.28. The interest coverage ratio of the stock is 1.93.
Currently, EBITDA for the company is 37.52 million with net debt to EBITDA at 4.55. When we switch over and look at the enterprise to sales, we see a ratio of 3.58. The receivables turnover for the company is 5.35for trailing twelve months and the total asset turnover is 0.2. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.82.
Conclusion
In summary, Neogen Corp. (NEOG) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
