Should You Buy Neogen Corporation (NEOG)?

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Judging by the fact that Neogen Corporation (NASDAQ:NEOG) has experienced no change in interest from hedge fund managers, we must look at a few select hedge funds that decided to sell off their entire stakes in the third quarter. Interestingly, Matthew Hulsizer’s PEAK6 Capital Management sold off the largest position of all the investors followed by Insider Monkey, worth an estimated $0.6 million in stock, and Michael Platt and William Reeves’s BlueCrest Capital Mgmt. was right behind this move, as the fund cut about $0.2 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Neogen Corporation (NASDAQ:NEOG) but similarly valued. We will take a look at Moog Inc (NYSE:MOG), Criteo SA (ADR) (NASDAQ:CRTO), Sothebys (NYSE:BID), and Dril-Quip, Inc. (NYSE:DRQ). This group of stocks’ market values are closest to NEOG’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MOG 17 91853 1
CRTO 13 132910 0
BID 20 559010 4
DRQ 24 145709 3

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $232 million. That figure was $29 million in NEOG’s case. Dril-Quip, Inc. (NYSE:DRQ) is the most popular stock in this table. On the other hand Criteo SA (ADR) (NASDAQ:CRTO) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Neogen Corporation (NASDAQ:NEOG) is even less popular than CRTO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None


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