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

Zacks Investment Research lowered shares of Neogen (NASDAQ:NEOG) from a hold rating to a sell rating in a research note released on Tuesday 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. On a  positive note,  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 firms have also recently issued reports on NEOG. BidaskClub upgraded shares of Neogen from a strong sell rating to a sell rating in a research report on Wednesday, March 20th. Craig Hallum upgraded shares of Neogen from a hold rating to a buy rating and set a $62.76 price objective for the company in a research report on Tuesday, March 19th. Finally, ValuEngine upgraded shares of Neogen from a hold rating to a buy rating in a research report on Thursday, January 24th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the company. The company has a consensus rating of Hold and an average target price of $62.76.

NASDAQ:NEOG opened at $56.67 on Tuesday. The stock has a market capitalization of $2.95 billion, a PE ratio of 46.83, a price-to-earnings-growth ratio of 5.03 and a beta of 1.33. Neogen has a twelve month low of $50.60 and a twelve month high of $97.38.

Neogen (NASDAQ:NEOG) last posted its quarterly earnings results on Tuesday, March 26th. The company reported $0.25 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.27 by ($0.02). The business had revenue of $97.70 million during the quarter, compared to analysts’ expectations of $102.55 million. Neogen had a return on equity of 10.48% and a net margin of 14.96%. The business’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.32 earnings per share. As a group, research analysts anticipate that Neogen will post 1.14 EPS for the current year.

In related news, Director James L. Herbert sold 23,419 shares of the firm’s stock in a transaction dated Wednesday, January 30th. The shares were sold at an average price of $59.06, for a total transaction of $1,383,126.14. Following the completion of the sale, the director now directly owns 706,484 shares in the company, valued at $41,724,945.04. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman James L. Herbert sold 45,334 shares of the firm’s stock in a transaction dated Tuesday, January 22nd. The stock was sold at an average price of $60.06, for a total transaction of $2,722,760.04. Following the sale, the chairman now owns 761,818 shares of the company’s stock, valued at $45,754,789.08. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 98,698 shares of company stock valued at $5,914,409. 3.00% of the stock is owned by company insiders.

A number of institutional investors have recently added to or reduced their stakes in NEOG. First Hawaiian Bank acquired a new stake in Neogen during the fourth quarter worth about $26,000. Captrust Financial Advisors increased its position in shares of Neogen by 47.0% during the fourth quarter. Captrust Financial Advisors now owns 970 shares of the company’s stock valued at $55,000 after acquiring an additional 310 shares during the last quarter. South Dakota Investment Council acquired a new stake in shares of Neogen during the fourth quarter valued at about $74,000. We Are One Seven LLC acquired a new stake in shares of Neogen during the fourth quarter valued at about $85,000. Finally, First Manhattan Co. acquired a new stake in shares of Neogen during the fourth quarter valued at about $114,000. Hedge funds and other institutional investors own 88.88% 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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