Should You Hold Neogen Corporation (NEOG)?

Conestoga Capital Advisors, an asset management company, released its “Small Cap Growth Fund” third-quarter investor letter. A copy of the same can be downloaded here. The fund declined 4.56% net of fees in the third quarter, compared to a 0.24% return for Russell 2000 Growth Index. Stock selection and negative sector allocation impacted the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Conestoga Capital Advisors highlighted stocks like Neogen Corporation (NASDAQ:NEOG) in its Q3 2022 investor letter. Headquartered in Lansing, Michigan, Neogen Corporation (NASDAQ:NEOG) is a global food and animal safety company. On December 15, 2022, Neogen Corporation (NASDAQ:NEOG) stock closed at $15.13 per share. One-month return of Neogen Corporation (NASDAQ:NEOG) was -3.14%, and its shares lost 65.93% of their value over the last 52 weeks. Neogen Corporation (NASDAQ:NEOG) has a market capitalization of $3.27 billion.

Conestoga Capital Advisors made the following comment about Neogen Corporation (NASDAQ:NEOG) in its Q3 2022 investor letter:

“Neogen Corporation (NASDAQ:NEOG): NEOG agreed to acquire the food safety business of 3M Company (MMM) in a transaction valued at $9.3 billion. Since then, MMM’s food safety business organic growth rate has declined, and it has experienced gross margin compression. The market is concerned that the combined entity will not have the forecasted revenue growth rates and adjusted EBITDA margins will be significantly less than planned. Furthermore, in its latest earnings release, NEOG said that it would not be able to give updated guidance for the combined company until it reports results in January 2023.”

Photo by Karlo Tottoc on Unsplash

Neogen Corporation (NASDAQ:NEOG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Neogen Corporation (NASDAQ:NEOG) at the end of the third quarter, which was 21 in the previous quarter.

We discussed Neogen Corporation (NASDAQ:NEOG) in another article and shared Wasatch Global Investors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.