Neogen (NASDAQ:NEOG) Shares Gap Up Following Strong Earnings

Neogen Corporation (NASDAQ:NEOG)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $9.40, but opened at $10.50. Neogen shares last traded at $10.7140, with a volume of 323,123 shares traded.

The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.03. The firm had revenue of $225.30 million for the quarter, compared to the consensus estimate of $212.35 million. Neogen had a positive return on equity of 2.78% and a negative net margin of 0.91%.The company’s quarterly revenue was down .1% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($2.82) EPS.

Key Stories Impacting Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Neogen reported fiscal Q4 adjusted earnings of $0.09 per share, above the $0.05 analyst consensus and substantially better than the $2.82-per-share loss reported in the year-ago quarter. Revenue of $225.3 million also exceeded estimates of $212.35 million. Neogen Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management forecast fiscal 2027 revenue of $880 million to $885 million, above the $851.1 million consensus estimate. First-quarter fiscal 2027 revenue guidance of $207 million to $209 million also topped the $204.9 million consensus. Neogen Fiscal 2027 Guidance
• Positive Sentiment: The company expects fiscal 2027 adjusted EBITDA of approximately $180 million to $182 million, signaling anticipated improvement in profitability and supporting the favorable investor reaction. Neogen Fiscal 2026 Results
• Neutral Sentiment: Despite the earnings beat, quarterly revenue was essentially flat year over year, down 0.1%, indicating that the stronger outlook depends on future growth rather than current top-line acceleration.
• Neutral Sentiment: Analysts’ average price target is approximately $10.67, below the stock’s recent trading level, suggesting valuation and expectations may limit additional upside. Analysts Set Neogen Price Target
• Negative Sentiment: Neogen plans to increase research and development spending by roughly 50% in fiscal 2027. Although intended to support longer-term growth, the investment could pressure near-term margins and earnings.

Analysts Set New Price Targets

NEOG has been the topic of a number of recent research reports. Weiss Ratings lowered shares of Neogen from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, July 24th. Wall Street Zen raised shares of Neogen from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $10.67.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. UMB Bank n.a. grew its stake in Neogen by 238.2% during the 4th quarter. UMB Bank n.a. now owns 6,422 shares of the company’s stock worth $45,000 after purchasing an additional 4,523 shares in the last quarter. Hantz Financial Services Inc. raised its position in Neogen by 816.9% in the 4th quarter. Hantz Financial Services Inc. now owns 7,592 shares of the company’s stock valued at $53,000 after purchasing an additional 6,764 shares in the last quarter. Cresset Asset Management LLC purchased a new position in shares of Neogen in the 2nd quarter valued at about $53,000. Evergreen Capital Management LLC purchased a new position in shares of Neogen in the 2nd quarter valued at about $56,000. Finally, Northwestern Mutual Wealth Management Co. grew its position in shares of Neogen by 3,158.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 8,309 shares of the company’s stock worth $58,000 after buying an additional 8,054 shares in the last quarter. 96.73% of the stock is currently owned by hedge funds and other institutional investors.

Neogen Stock Performance

The stock has a 50-day moving average price of $9.44 and a 200 day moving average price of $9.62. The company has a quick ratio of 2.84, a current ratio of 3.82 and a debt-to-equity ratio of 0.38. The firm has a market capitalization of $2.62 billion, a price-to-earnings ratio of -401.33, a P/E/G ratio of 5.16 and a beta of 1.80.

Neogen Company Profile

Neogen Corporation is a global provider of food and animal safety products, offering a broad portfolio of diagnostic and testing solutions. Headquartered in Lansing, Michigan, the company develops and manufactures tests designed to detect foodborne pathogens, allergens and toxins in food, beverage and environmental samples. Since its founding in 1982, Neogen has focused on delivering rapid, accurate and user‐friendly assays to food processors, grain handlers and quality laboratories around the world.

In the food safety arena, Neogen’s product lineup includes immunoassay kits, molecular diagnostics and enrichment media for pathogens such as Salmonella, Listeria and E.