Is Neogen Corporation (NEOG) a Good Buy?

Consequently, key hedge funds have been driving this bullishness. Sandler Capital Management, managed by Andrew Sandler, initiated the most valuable position in Neogen Corporation (NASDAQ:NEOG). Sandler Capital Management had $1.3 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $1 million investment in the stock during the quarter. The following funds were also among the new NEOG investors: Columbus Circle Investors, D E Shaw, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Neogen Corporation (NASDAQ:NEOG) but similarly valued. These stocks are Aircastle Limited (NYSE:AYR), Ormat Technologies, Inc. (NYSE:ORA), Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA), and Amicus Therapeutics, Inc. (NASDAQ:FOLD). This group of stocks’ market valuations match NEOG’s market valuation.

As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $341 million. That figure was $25 million in NEOG’s case. Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA) is the most popular stock in this table. On the other hand Ormat Technologies, Inc. (NYSE:ORA) is the least popular one with only 7 bullish hedge fund positions. Neogen Corporation (NASDAQ:NEOG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LTRPA might be a better candidate to consider a long position.