Neogen Corporation (NEOG): What is the Risk Factor?


Neogen Corporation (NASDAQ:NEOG) saw a downside of -0.40% to $19.90 after subtracting -$0.08 on Tuesday. The 5-day average trading volume is 2,369,945 shares of the company’s common stock. It has gained $20.06 in the past week and touched a new high 3 times within the past 5 days. An average of 2,589,351 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,165,292.

NEOG’s 1-month performance is 37.13% or $5.03 on its low of $14.48 reached on 12/28/22. The company’s shares have touched a 52-week low of $10.49 and high of $36.90, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, NEOG has achieved 31.19% or $4.67 and has reached a new high 10 times. However, the current price is down -46.07% from the 52-week high price.

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Valuation Metrics

NEOG stock has a beta of 0.83. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 6.82 while the price-to-book (PB) in the most recent quarter is 1.39.

Neogen Corporation’s quick ratio for the period ended November 29 was 3.30, with the current ratio over the same period at 4.20. As well, the company’s long term debt to equity for the quarter ending November 29 was 0.30, while the total debt to equity was 0.30. In terms of profitability, the gross margin trailing 12 months is 47.10%. The firm’s gross profit as reported stood at $243.01 million against revenue of $527.16 million.

Earnings Surprise

For the quarterly period ending November 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected NEOG to announce $0.03 per share in earnings in its latest quarter, but it posted -$0.19, representing a -733.30% surprise. EBITDA for the quarter stood at more than $19.08 million. NEOG stock balance sheet for the quarter ending November 29 shows that total liabilities totaled 1.46 billion, with total debt at $923.96 million. Shareholders hold equity totaling $216.15 million.

Let’s look briefly at Neogen Corporation (NEOG) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 89.38% to suggest the stock is trending Overbought, with historical volatility in this time period at 22.09%.

The stock’s 5-day moving average is $19.54, reflecting a +8.80% or $1.61 change from its current price. NEOG is currently trading +32.76% above its 20-day SMA, -6.00% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +41.03% and SMA200 by-35.81%.

Stochastic %K and %D was 96.67% and 95.78% and the average true range (ATR) pointed at 0.61. The RSI (14) points at 82.87%, while the 14-day stochastic is at 96.70% with the period’s ATR at 0.61. The stock’s 9-day MACD Oscillator is pointing at 1.00 and 1.84 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Neogen Corporation (NASDAQ: NEOG), William Blair upgraded it to an Outperform rating. They previously had a Mkt perform rating on the stock. Analysts offering their rating for NEOG stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate NEOG as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 1 have offered a “buy” rating.


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