Sun, June 16, 2024

Neogen’s 4.5% Daily Rise Amid 89% Drop in Trading Volume

Stocks Advance as Fed-Minutes Rate Hint, alpine

Quick Look:

  • Stock Performance: Neogen’s stock closed at £14.40 on June 4th, 2024, with a 4.5% increase and low trading volume.
  • Analyst Ratings: Piper Sandler revised the price target from £19.00 to £17.00 with a neutral rating.
  • Financial Health: Strong liquidity with quick and current ratios of 2.66 and 3.82; debt-to-equity ratio of 0.28.
  • Earnings: The latest EPS was £0.12 vs. expected £0.14; revenue was £228.80 million vs. £230.01 million expected.

On 4th June 2024, Neogen Corporation witnessed a notable fluctuation in its stock price, closing the day at £14.40 after hitting a high of £14.34 and a low of £13.72. This represented a significant daily percentage increase of 4.5%. The trading volume was 240,231 shares, significantly lower than the average daily volume of 2,092,833 shares, marking an 89% decrease in trading activity.

Piper Sandler Lowers Neogen’s Price Target to £17.00

Analyst firm Piper Sandler revised its price target for Neogen Corporation on 15th April 2024, adjusting it from £19.00 to £17.00 while maintaining a neutral rating on the stock. This adjustment reflects a cautious outlook amidst changing market conditions.

Neogen Corporation’s financial health remains robust, with a quick ratio of 2.66 and a current ratio of 3.82, indicating strong liquidity. The company’s debt-to-equity ratio stands at 0.28, suggesting a conservative approach to leveraging. However, when measured against moving averages, the company’s performance indicates challenges; the fifty-day moving average is at £13.14, and the two-hundred-day moving average is at £15.90, reflecting a downward trend.

Neogen’s Market Cap at £3.44B, P/E Ratio Soars to 1591.59

Neogen Corporation has a market capitalization of £3.44 billion, with an extremely high price-to-earnings (P/E) ratio of 1591.59. This elevated P/E ratio indicates that the stock may be overvalued or that investors are expecting significant future growth. The stock’s beta of 1.19 suggests it is slightly more volatile than the overall market.

In its latest earnings report released on 9th April 2024, Neogen Corporation reported earnings per share (EPS) of £0.12, slightly below the expected £0.14. The company’s revenue came in at £228.80 million, just shy of the anticipated £230.01 million, but marked a 4.8% year-over-year increase. The net margin was a slim 0.17%, and the return on equity was reported at 3.35%. The predicted EPS for the upcoming period is set at £0.46.

Neogen Reports £0.12 EPS, Revenue at £228.80M in April 2024

Recent insider transactions reveal a positive sentiment among the company’s executives. On 11th April 2024, James C. Borel purchased 7,500 shares at £13.06 each, totalling £97,950. Douglas Edward Jones followed with the acquisition of 10,000 shares at £12.36 each on 17th April 2024, amounting to £123,600. Over the last 90 days, insiders have collectively bought 53,000 shares valued at £662,205, with insider ownership standing at 0.71%.

The stock’s performance over the past year has seen a decline of 25.96%, with the highest price reaching £24.09 and the lowest at £11.46. The simple moving average over the last 200 days shows a decrease of 17.64%. The stock’s volatility remains moderate, with monthly and weekly volatility at 3.46% and 3.43%, respectively. Over the past seven days, the stock has gained 3.47%.

Analyst Sentiment Split: Neogen Rated from Overweight to Neutral

Neogen Corporation has received mixed analyst ratings over the past few years. Wells Fargo rated the stock as overweight on 16th June 2023, while William Blair provided an outperform rating on 22nd November 2022. Piper Sandler’s rating from 12th July 2022 remains neutral with a target price of £25.00, and ROTH Capital has maintained a neutral stance since 5th December 2017. Another rating from William Blair on 22nd November 2022 indicates a market performance recommendation.

Neogen Corporation’s stock has shown significant volatility and mixed performance metrics recently. The substantial reduction in trading volume and the revision of price targets by analysts highlight a cautious market sentiment. However, strong liquidity ratios, insider buying, and steady revenue growth present a nuanced picture. Investors should closely monitor upcoming earnings reports and market conditions to gauge future performance accurately.

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