Neogen Corporation Receives Mixed Ratings from Analysts
Shares of Neogen Corporation (NASDAQ:NEOG) have garnered an average recommendation of “Hold” from six brokerage firms currently covering the company, according to Marketbeat.com. Among these ratings, one analyst has issued a sell recommendation, while three analysts suggest holding the stock and two recommend buying it. The consensus points to an average one-year target price of $8.83 for the stock, reflecting a mix of optimism and caution from financial analysts.
Analysts have been active in updating their recommendations on Neogen in recent weeks. On October 16, 2023, Piper Sandler set a price target of $6.50 and assigned a “neutral” rating in their latest report. Shortly thereafter, on December 13, 2023, Wall Street Zen upgraded Neogen from a “hold” to a “buy” rating, highlighting a shift in sentiment among analysts. Similarly, Zacks Research adjusted its rating from “strong sell” to “hold” on August 20, 2023. In contrast, CJS Securities elevated Neogen from a “market perform” to an “outperform” rating, setting a target price of $10.00 on December 10, 2023. Weiss Ratings, however, maintained a “sell (d-)” rating on the stock in a report released on Monday.
Institutional Investors Adjust Holdings
Recent activity from institutional investors and hedge funds has also influenced Neogen’s stock dynamics. LPL Financial LLC increased its holdings in Neogen by 7.6% during the first quarter, now owning 192,759 shares valued at approximately $1.57 million after acquiring an additional 13,626 shares. Vanguard Group Inc. similarly boosted its stake by 8.8%, now holding 23,550,128 shares worth around $204.18 million after purchasing an additional 1,912,877 shares last quarter.
Additionally, Charles Schwab Investment Management Inc. raised its holdings by 8.4%, bringing its total to 2,235,459 shares valued at $19.38 million after acquiring an extra 173,532 shares. The Maryland State Retirement & Pension System made a new investment in Neogen valued at $500,000 during this same period. Invesco Ltd. also expanded its holdings by 35.9%, now owning 870,824 shares worth $7.55 million following the purchase of 230,201 shares. Collectively, institutional investors and hedge funds now control approximately 96.73% of Neogen’s stock.
Overview of Neogen Corporation
Neogen Corporation, alongside its subsidiaries, specializes in the development, manufacturing, and marketing of products and services dedicated to food and animal safety on a global scale. The company operates through two primary segments: Food Safety and Animal Safety. The Food Safety division provides diagnostic test kits and related products designed to detect harmful and unintended substances in food and animal feed. This includes testing for foodborne pathogens, spoilage organisms, natural toxins, food allergens, and other safety concerns.
Neogen’s innovative offerings, such as the AccuPoint Advanced rapid sanitation test, help identify the presence of adenosine triphosphate (ATP), a chemical marker of biological contamination. Furthermore, the company provides genomics-based diagnostic technology and software systems that enable users to assess, store, and analyze results over time and across multiple locations.
As Neogen navigates an evolving market, the mixed recommendations and investment strategies from analysts and institutional investors underscore the complex landscape of the food and animal safety sector.
