Neogen (NEOG) Board Initiates Share Buyback Plan

Neogen (NASDAQ:NEOG) announced that its board has approved a stock repurchase plan, which allows the company to repurchase 3,000,000 outstanding shares on Wednesday, October 10th. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Several equities research analysts have commented on NEOG shares. ValuEngine lowered shares of Neogen from a “strong-buy” rating to a “buy” rating in a report on Wednesday, September 26th. Zacks Investment Research lowered shares of Neogen from a “hold” rating to a “sell” rating in a report on Friday, September 28th. Craig Hallum upped their price target on shares of Neogen from $65.00 to $70.00 and gave the company a “hold” rating in a report on Wednesday, July 18th. Finally, BidaskClub lowered shares of Neogen from a “strong-buy” rating to a “buy” rating in a report on Thursday, September 20th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company’s stock. Neogen presently has an average rating of “Hold” and an average target price of $67.75.

NASDAQ:NEOG opened at $64.92 on Friday. Neogen has a one year low of $54.09 and a one year high of $97.38. The company has a debt-to-equity ratio of 0.03, a quick ratio of 8.09 and a current ratio of 10.10. The firm has a market capitalization of $3.71 billion, a price-to-earnings ratio of 55.15 and a beta of 1.37.

Neogen (NASDAQ:NEOG) last posted its quarterly earnings results on Tuesday, September 25th. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.28 by $0.01. Neogen had a net margin of 16.35% and a return on equity of 12.06%. The company had revenue of $99.60 million for the quarter, compared to analyst estimates of $104.43 million. During the same period in the prior year, the company earned $0.31 earnings per share. The firm’s revenue was up 5.7% on a year-over-year basis. Sell-side analysts anticipate that Neogen will post 1.24 earnings per share for the current year.

In other news, CEO John Edward Adent bought 4,300 shares of the stock in a transaction dated Wednesday, September 26th. The shares were acquired at an average cost of $73.58 per share, with a total value of $316,394.00. Following the purchase, the chief executive officer now directly owns 4,300 shares in the company, valued at approximately $316,394. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Jack C. Parnell sold 2,418 shares of the stock in a transaction dated Friday, August 10th. The stock was sold at an average price of $83.97, for a total transaction of $203,039.46. Following the sale, the director now directly owns 14,073 shares in the company, valued at $1,181,709.81. The disclosure for this sale can be found here. Over the last three months, insiders have sold 281,450 shares of company stock worth $23,364,113. Corporate insiders own 3.00% of the company’s stock.

About Neogen

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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