Should You Retain Your Holdings in Neogen Corporation (NEOG)?
Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Strategy” Q3 2022 investor letter. A copy of the same can be downloaded here. The Small Company Composite returned -3.06% in the quarter compared to 0.24% for the Russell 2000 Growth Index. The rise in interest rates and inflation concerns drove equity market volatility in the quarter. In this scenario, despite the strong fundamentals, the strategy underperformed its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Brown Capital Management 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 16, 2022, Neogen Corporation (NASDAQ:NEOG) stock closed at $14.88 per share. One-month return of Neogen Corporation (NASDAQ:NEOG) was -3.69%, and its shares lost 66.43% of their value over the last 52 weeks. Neogen Corporation (NASDAQ:NEOG) has a market capitalization of $3.216 billion.
Brown Capital Management made the following comment about Neogen Corporation (NASDAQ:NEOG) in its Q3 2022 investor letter:
"Neogen Corporation (NASDAQ:NEOG) manufactures and sells a variety of food-safety and animal-safety tests and products globally. Neogen’s Food Safety division develops tests for food toxins, pathogens, allergens, spoilage organisms, drug residues, genetic modifications, sanitation and dehydrated culture media for custom testing. The company’s Animal Safety division develops diagnostic tests, veterinary instruments, nutritional supplements, disinfectants, insecticides and rodenticides. The company also offers genomic testing services for a wide range of agricultural animals to improve breeding selection. As the food supply becomes increasingly global, products move through multiple touch points, creating an increasing need for testing to prevent illness and death. These on-site tests also save time and money versus sending samples to an off-site laboratory.
Neogen has been in a steep sell-off following the announcement in December 2021 of plans to acquire a similarly sized 3M food safety business. The sell-off continued throughout the third quarter. Given the significant impact of the acquisition on Neogen’s business, we are reviewing our thesis for the company."
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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.
