NEOG Should I Buy
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Neogen Corp (NEOG) is not a strong buy at the moment for a beginner investor with a long-term strategy. The company's financial performance is weak, with significant YoY declines in revenue, net income, and EPS. While hedge funds are buying and analysts have raised price targets, the lack of strong technical signals and weak financials suggest waiting for better entry points.
The MACD is negatively expanding, RSI is neutral at 28.432, and moving averages are converging, showing no clear trend. The stock is trading near a key support level (S1: 10.681) with pre-market weakness (-1.31%).
Hedge funds are significantly increasing their buying activity (+999.08% over the last quarter). Analysts have raised price targets and maintained positive ratings after the company beat revenue and EBITDA expectations.
The company recently sold its animal genomics division to Zoetis, which may impact future revenue streams. Financial performance is weak, with significant YoY declines in revenue (-2.84%), net income (-96.51%), and EPS (-96.67%). Gross margin also dropped by -3.89%.
In Q2 2026, revenue dropped to $224.69M (-2.84% YoY), net income plummeted to -$15.92M (-96.51% YoY), and EPS fell to -0.07 (-96.67% YoY). Gross margin decreased to 37.29% (-3.89% YoY).
Guggenheim raised the price target to $12 from $8 and maintained a Buy rating, citing improved portfolio performance and cost actions taking hold. CJS Securities upgraded the stock to Outperform with a $10 price target.
