NeoGenomics Inc. (NASDAQ: NEO) stock fell -1.90% on Friday to $13.46 against a previous-day closing price of $13.72. With 2.22 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.8 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $13.73 whereas the lowest price it dropped to was $13.06. The 52-week range on NEO shows that it touched its highest point at $20.54 and its lowest point at $6.00 during that stretch. It currently has a 1-year price target of $21.18. Beta for the stock currently stands at 1.09.
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 down-trending over the past week, with a drop of -0.96%, but this was down by -2.04% over a month. Three-month performance dropped to -17.12% while six-month performance fell -30.80%. The stock gained 33.27% in the past year, while it has gained 45.67% so far this year. A look at the trailing 12-month EPS for NEO yields -0.92 with Next year EPS estimates of -0.15. For the next quarter, that number is -0.08. This implies an EPS growth rate of 50.00% for this year and 46.40% 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 -45.90%.
Float and Shares Shorts:
At present, 127.55 million NEO shares are outstanding with a float of 125.50 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.47 million, which was 4.29% higher than short shares on Jul 30, 2023. In addition to Mr. Christopher Michael Smith BSc as the firm’s CEO & Director, Mr. Jeffrey S. Sherman M.B.A. serves as its Chief Financial Officer.
Through their ownership of 93.40% of NEO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.86% of NEO, in contrast to 33.46% held by mutual funds. Shares owned by individuals account for 11.11%. As the largest shareholder in NEO with 15.06% of the stake, BlackRock Fund Advisors holds 19,206,619 shares worth 19,206,619. A second-largest stockholder of NEO, The Vanguard Group, Inc., holds 14,404,764 shares, controlling over 11.29% of the firm’s shares. Janus Henderson Investors US LLC is the third largest shareholder in NEO, holding 7,527,862 shares or 5.90% stake. With a 7.06% stake in NEO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,010,119 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.18% of NEO stock, is the second-largest Mutual Fund holder. It holds 4,051,998 shares valued at 60.9 million. Vanguard Small Cap Index Fund holds 2.60% of the stake in NEO, owning 3,319,185 shares worth 49.89 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, NEO reported revenue of $125.07M and operating income of -$39.70M. The EBITDA in the recently reported quarter was -$22.69M and diluted EPS was -$0.28.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NEO since 0 analysts follow the stock currently. 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 $17.00, the average target price over the next 12 months is $21.18. Based on these targets, NEO could surge 93.16% to reach the target high and rise by 26.3% to reach the target low. Reaching the average price target will result in a growth of 57.36% 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.
Summary of Insider Activity:
Insiders traded NEO stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 14 shares were sold. The number of buy transactions has increased to 8 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 356,413 while 27,797 shares were sold.