Neogen (NEOG) to Repurchase 3,000,000 Outstanding Shares

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Neogen (NASDAQ:NEOG) declared that its Board of Directors has authorized a share repurchase program, which permits the company to buyback 3,000,000 outstanding shares on Wednesday, October 10th. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Shares of Neogen stock opened at $64.92 on Friday. Neogen has a 12-month low of $54.09 and a 12-month high of $97.38. The firm has a market cap of $3.71 billion, a P/E ratio of 53.65 and a beta of 1.37. The company has a quick ratio of 8.09, a current ratio of 10.10 and a debt-to-equity ratio of 0.03.

Neogen (NASDAQ:NEOG) last announced its quarterly earnings results on Tuesday, September 25th. The company reported $0.29 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.28 by $0.01. Neogen had a return on equity of 12.06% and a net margin of 16.35%. The business had revenue of $99.60 million during the quarter, compared to the consensus estimate of $104.43 million. During the same quarter in the prior year, the company posted $0.31 earnings per share. Neogen’s revenue was up 5.7% compared to the same quarter last year. On average, equities analysts anticipate that Neogen will post 1.24 EPS for the current year.

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

In other Neogen news, Director Jack C. Parnell sold 2,418 shares of the company’s stock in a transaction on Friday, August 10th. The stock was sold at an average price of $83.97, for a total value of $203,039.46. Following the completion of the transaction, the director now owns 14,073 shares in the company, valued at approximately $1,181,709.81. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider James L. Herbert sold 38,600 shares of the company’s stock in a transaction on Wednesday, July 18th. The shares were sold at an average price of $82.20, for a total value of $3,172,920.00. Following the completion of the transaction, the insider now owns 775,226 shares of the company’s stock, valued at approximately $63,723,577.20. The disclosure for this sale can be found here. Insiders have sold 281,450 shares of company stock valued at $23,364,113 in the last quarter. 3.00% of the stock is currently owned by corporate insiders.

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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