Stock Traders Buy High Volume of Neogen Call Options (NASDAQ:NEOG)

Neogen Corporation (NASDAQ:NEOG) was the target of unusually large options trading on Thursday. Stock traders bought 12,840 call options on the stock. This is an increase of approximately 1,200% compared to the average daily volume of 988 call options.

Neogen Stock Down 1.8%

Shares of NASDAQ:NEOG traded down $0.17 during trading on Thursday, reaching $9.22. 828,080 shares of the stock were exchanged, compared to its average volume of 3,337,927. Neogen has a 1-year low of $3.87 and a 1-year high of $11.43. The stock has a fifty day moving average of $10.13 and a two-hundred day moving average of $7.83. The company has a debt-to-equity ratio of 0.38, a current ratio of 3.91 and a quick ratio of 2.80. The firm has a market cap of $2.01 billion, a price-to-earnings ratio of -3.33 and a beta of 1.97.

Neogen (NASDAQ:NEOG) last posted its quarterly earnings results on Thursday, January 8th. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.03. Neogen had a negative net margin of 68.47% and a positive return on equity of 2.14%. The business had revenue of $224.69 million during the quarter, compared to the consensus estimate of $208.50 million. During the same quarter last year, the firm posted $0.11 EPS. Neogen’s revenue was down 2.9% compared to the same quarter last year. Research analysts anticipate that Neogen will post 0.38 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on NEOG. Guggenheim reissued a “buy” rating and issued a $12.00 price target (up from $8.00) on shares of Neogen in a research note on Friday, January 9th. CJS Securities upgraded shares of Neogen from a “market perform” rating to an “outperform” rating and set a $10.00 price objective for the company in a research note on Wednesday, December 10th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Neogen in a research report on Monday, December 29th. Wall Street Zen upgraded shares of Neogen from a “hold” rating to a “buy” rating in a report on Saturday, February 14th. Finally, William Blair reiterated a “market perform” rating on shares of Neogen in a report on Monday, March 2nd. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Neogen has an average rating of “Hold” and a consensus price target of $10.67.

Hedge Funds Weigh In On Neogen

A number of hedge funds have recently added to or reduced their stakes in NEOG. UMB Bank n.a. increased its holdings 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. boosted its position in shares of Neogen by 816.9% during the fourth quarter. Hantz Financial Services Inc. now owns 7,592 shares of the company’s stock valued at $53,000 after buying an additional 6,764 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in 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. Los Angeles Capital Management LLC purchased a new stake in Neogen in the 4th quarter valued at $65,000. Finally, Merit Financial Group LLC purchased a new stake in Neogen in the 4th quarter valued at $71,000. Institutional investors and hedge funds own 96.73% of the company’s stock.

About Neogen

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.