Insider Buying: CFO David Naemura Acquires 10,000 Shares of Neogen Corp
On October 11, 2023, David Naemura, the Chief Financial Officer (CFO) of Neogen Corp (NASDAQ:NEOG), purchased 10,000 shares of the company. This move is significant as insider buying often signals confidence in the company's future prospects.
David Naemura is a seasoned financial executive with extensive experience in the industry. As the CFO of Neogen Corp, he is responsible for the company's financial strategy and operations. His decision to increase his stake in the company is a strong vote of confidence in its future.
Neogen Corp is a leading company in the development, manufacture, and marketing of products dedicated to food and animal safety. The company operates through two segments, Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and complementary products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens, and levels of general sanitation.
Insider buying refers to when a company's executives, directors, or other insiders legally purchase shares of their own company's stock. This is often seen as a positive sign as it indicates that insiders believe in the company's future and are willing to invest their own money in it. Conversely, insider selling refers to insiders selling their own company's stock, which can sometimes be seen as a lack of confidence in the company's future prospects.
Over the past year, David Naemura has purchased a total of 10,000 shares and has not sold any shares. This indicates a strong belief in the company's future prospects.
The insider transaction history for Neogen Corp shows a total of 2 insider buys over the past year, with only 1 insider sell over the same timeframe. This trend suggests that insiders at Neogen Corp have a positive outlook on the company's future.
On the day of the insider's recent buy, shares of Neogen Corp were trading at $15.03 each, giving the company a market cap of $3.086 billion.
With a price of $15.03 and a GuruFocus Value of $37.34, Neogen Corp has a price-to-GF-Value ratio of 0.4. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity at Neogen Corp, coupled with the company's undervalued status, suggests that the company may be a good investment opportunity. However, as always, potential investors should conduct their own thorough research before making any investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
