Exploring Neogen Corporation (NEOG) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Neogen Corporation (NEOG), a key company in food and animal safety? With 696 institutional owners and shareholders holding a total of 327,684,078 shares, the investor landscape is quite diverse. Are you curious about which institutions wield the most influence and what their investment strategies might be? Let's delve into the details of Neogen's investor profile, exploring the major shareholders like BlackRock, Inc., Vanguard Group Inc, and Norges Bank, and understanding why these and other institutions are investing in Neogen (NEOG), especially given its recent financial performance, including a 12.37% increase in revenue to $924.22 million in 2024 and adjusted net income of $22.4 million.

Neogen Corporation (NEOG) Who Invests in Neogen Corporation (NEOG) and Why?

Understanding the investor profile of Neogen Corporation (NEOG) provides insights into the market's perception of the company. Investors are generally categorized into retail investors, institutional investors, and hedge funds, each having different motivations and strategies.

Key Investor Types:

The investor base of Neogen Corporation (NEOG) includes a mix of retail and institutional investors. Each group brings different investment philosophies and expectations.

• Retail Investors: Individual investors who buy and sell securities for their own accounts. Their investment decisions are often based on personal research, recommendations, or market trends.
• Institutional Investors: Entities that pool large sums of money to invest, such as pension funds, mutual funds, insurance companies, and endowments. These investors typically have a longer-term investment horizon and conduct thorough due diligence.
• Hedge Funds: Investment partnerships that use more aggressive strategies, such as leverage, short-selling, and derivatives, to generate higher returns. Their investment horizon can vary from short-term to long-term.

Investment Motivations:

Investors are attracted to Neogen Corporation (NEOG) for various reasons, typically revolving around the company's growth prospects, market position, and potential for returns.

• Growth Prospects: Investors often look at Neogen Corporation (NEOG)'s potential for future growth in its respective markets. This includes assessing the company's innovation, expansion into new markets, and ability to increase revenue and earnings.
• Market Position: A strong market position can be a significant draw for investors. This includes factors such as market share, brand recognition, and competitive advantages.
• Dividends: While not always a primary motivator for growth-oriented companies, dividends can attract income-seeking investors. However, it’s important to verify Neogen Corporation (NEOG)'s dividend history and yield, as this can influence investor interest.

Investment Strategies:

Different investors adopt varying strategies when investing in Neogen Corporation (NEOG), depending on their investment goals and risk tolerance.

• Long-Term Holding: Many institutional investors and some retail investors adopt a long-term holding strategy, focusing on the company's fundamentals and long-term growth potential. This involves holding the stock for an extended period, often several years, to benefit from the company's growth and potential capital appreciation.
• Short-Term Trading: Some investors, particularly hedge funds and active traders, may engage in short-term trading strategies to profit from short-term price fluctuations. This can involve technical analysis, market timing, and other speculative techniques.
• Value Investing: Value investors seek to identify undervalued companies with strong fundamentals. They look for companies trading below their intrinsic value and hold the stock until the market recognizes its true worth.

The following table provides a hypothetical overview of Neogen Corporation (NEOG)'s investor composition and their typical investment strategies. Note that this is an illustrative example, and actual data may vary.

For more insights into Neogen Corporation (NEOG), you might find this resource helpful: Neogen Corporation (NEOG): History, Ownership, Mission, How It Works & Makes Money

Neogen Corporation (NEOG) Institutional Ownership and Major Shareholders of Neogen Corporation (NEOG)

Institutional ownership in Neogen Corporation (NEOG) reflects the extent to which large financial institutions, such as mutual funds, pension funds, and hedge funds, hold shares in the company. Analyzing the ownership structure provides insights into market sentiment and potential stock price stability. Significant institutional investment can lend credibility to a company, while shifts in ownership may signal strategic changes or concerns.

As of December 31, 2024, the top institutional holders of Neogen Corporation (NEOG) include:

• BlackRock Fund Advisors: Holding 3,797,595 shares, representing approximately 3.52% ownership.
• The Vanguard Group: Holding 8,781,291 shares, representing about 8.13% ownership.
• SSgA Funds Management, Inc.: Holding 3,407,224 shares, holding approximately 3.16% ownership.

These major institutional investors wield considerable influence due to the size of their holdings. Their investment decisions can significantly impact Neogen Corporation (NEOG)’s stock price and overall market perception.

Recent changes in institutional ownership can provide valuable insights into the evolving sentiment surrounding Neogen Corporation (NEOG). For example:

• During the third quarter of 2024, Vanguard Group increased its holdings by 3.0%.
• Meanwhile, Allspring Global Investments Holdings, LLC acquired a new position in Neogen Corporation (NEOG) valued at $25,000 during the fourth quarter of 2023.
• Conversely, Citigroup Inc. reduced its holdings by 6.9% during the first quarter of 2024.

These transactions suggest a dynamic environment where institutional investors are actively adjusting their positions in response to Neogen Corporation (NEOG)’s performance and broader market conditions.

Institutional investors play a crucial role in Neogen Corporation (NEOG)’s stock price and strategic direction. Their substantial holdings can provide a degree of stability to the stock price, as large institutions tend to invest for the long term. Moreover, their involvement can influence corporate governance and strategic decisions.

The presence of prominent institutional investors often enhances a company's credibility, attracting further investment and potentially lowering the cost of capital. However, significant shifts in institutional ownership can also create volatility, particularly if a large investor decides to reduce its stake.

A detailed overview of Neogen Corporation (NEOG)’s major shareholders as of December 31, 2024, is presented in the following table:

These figures underscore the significant institutional interest in Neogen Corporation (NEOG), reflecting confidence in the company’s prospects and strategic direction.

For further insights into Neogen Corporation (NEOG)'s financial standing, consider exploring Breaking Down Neogen Corporation (NEOG) Financial Health: Key Insights for Investors.

Neogen Corporation (NEOG) Key Investors and Their Impact on Neogen Corporation (NEOG)

Understanding the investor profile of Neogen Corporation (NEOG) provides valuable insights into the company's stability, growth potential, and strategic direction. Key investors can significantly influence company decisions and stock performance through their holdings and actions.

While specific, real-time data on all individual investors and their recent moves can fluctuate and may not always be publicly accessible, we can discuss the types of investors and their potential impact, as well as illustrate with examples of major institutional holders and their reported positions based on the latest available information.

Notable types of investors in Neogen Corporation (NEOG) typically include:

• Institutional Investors: These are entities such as mutual funds, pension funds, hedge funds, and insurance companies that manage large sums of money on behalf of others. Their investment decisions are often driven by in-depth research and analysis.
• Individual Investors: These are individuals who invest their own money in the stock market. They can range from retail investors with small portfolios to high-net-worth individuals with substantial holdings.
• Activist Investors: These are investors who purchase significant stakes in a company with the goal of influencing its management, strategy, or policies. They often publicly advocate for changes they believe will increase shareholder value.
• Strategic Investors: These may be other companies in the same or related industries that take a stake in Neogen Corporation (NEOG) for strategic reasons, such as partnerships, collaborations, or potential acquisitions.

The influence of these investors on Neogen Corporation (NEOG) can be considerable:

• Stock Movements: Large purchases or sales by institutional investors can drive significant price movements in the stock.
• Company Decisions: Major shareholders can exert influence on corporate governance matters, such as board elections, executive compensation, and strategic initiatives.
• Activism: Activist investors can push for specific changes, such as cost-cutting measures, asset sales, or changes in management.

Recent moves by investors, such as buying or selling large stakes, can signal confidence or concern about the company's prospects. Activist investors may also launch campaigns to advocate for specific changes.

For instance, according to the latest information, major institutional holders might include well-known funds like Vanguard Group, BlackRock Fund Advisors, and State Street Corporation. These firms often hold substantial positions in many publicly traded companies, including Neogen Corporation (NEOG). However, specific details on individual transactions and real-time holdings would require continuously updated financial data and filings.

Here's an example of how institutional holdings might be represented (note that this is an illustrative table, and actual holdings may differ):

Keep in mind that the data in this table is purely illustrative and does not reflect real-time holdings. For the most up-to-date information, refer to financial news sources and company filings.

To delve deeper into the company's background, explore Neogen Corporation (NEOG): History, Ownership, Mission, How It Works & Makes Money.

Neogen Corporation (NEOG) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for assessing the current state and future prospects of Neogen Corporation (NEOG). Recent events, financial performance, and analyst ratings all contribute to the overall investor profile.

The recent announcement of CEO John Adent's departure triggered a negative market reaction, with shares falling around 15% during premarket trading. Leadership transitions often create uncertainty among investors, raising concerns about potential disruptions or shifts in company strategy.

Neogen's stock has been trading down, experiencing a notable drop of -8.48% amid rising market uncertainty and competitive pressures. The fiscal Q3 earnings and revenue fell short of expectations, leading the company to adjust its fiscal 2025 revenue outlook. Piper Sandler slashed Neogen's price target from $13 to $6.40, reflecting cautious market sentiment following the company's latest performance report. Shares plummeted significantly, with prices diving over 20%, causing stakeholders and investors to re-evaluate the company's future course and potential recovery.

Neogen's Q3 2025 earnings revealed an unexpected rise in earnings per share (EPS) but a miss on revenue forecasts. The company posted an EPS of $0.10, surpassing the forecast of -$0.01. However, revenue came in at $221 million, falling short of the expected $232.36 million. Despite the EPS beat, Neogen's stock fell sharply, with premarket trading showing a 20.45% drop to $5.60. The stock is trading near its 52-week low of $6.89, with a market capitalization of $1.53 billion.

Neogen's financial health presents a mixed picture. The company reported a negative EBIT margin of -48% and an EBITA margin of -34.1%. While gross margin stood at a commendable 48.8%, the firm battles marred profit margins, indicated by a profit margin of -53.56%.

On the balance sheet, Neogen's leverage is manageable with a total debt-to-equity ratio of 0.34 and a current ratio of 3.9, suggesting the company is well-positioned to meet short-term obligations. However, poor return metrics, including an ROE of -16.71% and ROA of -2.58%, signal inefficiencies in profit generation relative to asset and equity bases. Cash flow snapshots reveal an operating cash flow of $19.36 million and a free cash flow marked by a negative outflow of $64.23 million.

Despite these challenges, Guggenheim analysts maintain a Buy rating on Neogen, though they reduced the price target to $13.00 from $15.00. Guggenheim's analysts believe that despite the current challenges, a post-integration Neogen with potential for growth is on the horizon. However, they also acknowledge that the recent change in CEO and the uncertain macroeconomic conditions could prolong the period of erratic growth in the near term.

Here's a glimpse into Neogen's key financial figures:

• Revenue: $221 million, below the forecast of $232.36 million.
• EPS: $0.10, exceeding the forecast of -$0.01.
• Gross margin: 49.9%, down 120 basis points year-over-year.
• Adjusted EBITDA: $49 million, representing a 22% margin.
• Free cash flow: -$14 million.
• Gross debt: $900 million.
• Total cash: $128 million.

Institutional ownership in Neogen is significant. Neogen Corporation has 696 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC). These institutions hold a total of 327,684,078 shares. Largest shareholders include BlackRock, Inc., Vanguard Group Inc, Norges Bank, William Blair Investment Management, Llc, Baillie Gifford & Co, Select Equity Group, L.P., Conestoga Capital Advisors, LLC, Bamco Inc /ny/, State Street Corp, and Mackenzie Financial Corp.

Recent hedge fund activity reveals mixed sentiment. In the most recent quarter, 144 institutional investors increased their positions in Neogen, while 156 decreased their positions. Some of the largest moves include:

• SELECT EQUITY GROUP, L.P. removed 3,845,047 shares (-29.0%) from their portfolio in Q4 2024, for an estimated $46,678,870.
• UBS GROUP AG added 3,357,298 shares (+1931.6%) to their portfolio in Q4 2024, for an estimated $40,757,597.
• CLARKSTON CAPITAL PARTNERS, LLC added 2,866,666 shares (+inf%) to their portfolio in Q4 2024, for an estimated $34,801,325.
• VANGUARD GROUP INC added 1,928,491 shares (+9.8%) to their portfolio in Q4 2024, for an estimated $23,411,880.
• T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 1,521,560 shares (+27.2%) to their portfolio in Q4 2024, for an estimated $18,471,738.
• BAILLIE GIFFORD & CO removed 1,478,216 shares (-13.2%) from their portfolio in Q4 2024, for an estimated $17,945,542.
• DIMENSIONAL FUND ADVISORS LP added 1,345,056 shares (+24.0%) to their portfolio in Q4 2024, for an estimated $16,328,979.

Neogen insiders have been actively trading the company's stock. Over the past 6 months, there have been 3 purchases and 0 sales by insiders. CEO John Edward Adent made 2 purchases, buying 37,535 shares for an estimated $454,176. CFO David H. Naemura purchased 14,800 shares for an estimated $164,428.

Overall, analyst ratings for Neogen are mixed. Based on analysis of 6 Wall Street analysts, NEOG has a bullish consensus with a median price target of $9.70 (ranging from $6.40 to $13.00). The overall analyst rating is Strong Buy (8.7/10). Currently trading at $4.39, the median forecast implies a 121.0% upside. This outlook is supported by 2 Buy, 1 Hold, and 0 Sell ratings.

Here is a summary of Neogen's top institutional holders:

For insights into Neogen's core values and long-term goals, explore: Mission Statement, Vision, & Core Values of Neogen Corporation (NEOG).