NeoGenomics Inc. (NEO) can make a big difference with a little luck

NeoGenomics Inc. (NASDAQ: NEO) stock jumped 6.80% on Monday to $11.94 against a previous-day closing price of $11.18. With 0.64 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.23 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $11.97 whereas the lowest price it dropped to was $11.13. The 52-week range on NEO shows that it touched its highest point at $23.78 and its lowest point at $6.00 during that stretch. It currently has a 1-year price target of $15.78. Beta for the stock currently stands at 1.13.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NEO was up-trending over the past week, with a rise of 8.74%, but this was up by 14.37% over a month. Three-month performance surged to 83.69% while six-month performance rose 25.95%. The stock lost -45.43% in the past year, while it has gained 29.22% so far this year. A look at the trailing 12-month EPS for NEO yields -1.32 with Next year EPS estimates of -0.53. For the next quarter, that number is -0.17. This implies an EPS growth rate of -286.40% for this year and 22.10% for next year. EPS is expected to grow by 1.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 29.40%.

Float and Shares Shorts:

At present, 124.42 million NEO shares are outstanding with a float of 122.24 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.39 million, which was 4.28% higher than short shares on Sep 14, 2022. In addition to Mr. George A. Cardoza as the firm’s Pres & COO of Lab Operations, Ms. Kathryn B. McKenzie serves as its Interim Chief Culture Officer, Chief Sustainability & Risk Officer.


Institutional Ownership:

Through their ownership of 97.59% of NEO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.53% of NEO, in contrast to 31.97% held by mutual funds. Shares owned by individuals account for 11.22%. As the largest shareholder in NEO with 15.23% of the stake, BlackRock Fund Advisors holds 19,230,311 shares worth 19,230,311. A second-largest stockholder of NEO, The Vanguard Group, Inc., holds 12,982,135 shares, controlling over 10.28% of the firm’s shares. Brown Advisory LLC is the third largest shareholder in NEO, holding 6,177,104 shares or 4.89% stake. With a 7.39% stake in NEO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,327,068 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.88% of NEO stock, is the second-largest Mutual Fund holder. It holds 3,640,498 shares valued at 33.64 million. Vanguard Small Cap Index Fund holds 2.45% of the stake in NEO, owning 3,091,705 shares worth 28.57 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NEO since 13 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NEO analysts setting a high price target of $26.00 and a low target of $7.10, the average target price over the next 12 months is $14.91. Based on these targets, NEO could surge 117.76% to reach the target high and fall by -40.54% to reach the target low. Reaching the average price target will result in a growth of 24.87% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NEO will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of -$0.61 being high and -$0.78 being low. For NEO, this leads to a yearly average estimate of -$0.68. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NeoGenomics Inc. surprised analysts by $0.07 when it reported -$0.14 EPS against a consensus estimate of -$0.21. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is -$0.10 and the low estimate is -$0.27. The average estimate for the next quarter is thus -$0.16.

Summary of Insider Activity:

Insiders traded NEO stock several times over the past three months with 6 Buys and 1 Sells. In these transactions, 354,681 shares were bought while 959 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 1,742,248 while 7,588 shares were sold.

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