Why is Neogenomics Inc. Stock Price Dropping? Is it right time to invest? All you need to know about it.

Why is Neogenomics Inc. Stock Price Dropping?

NeoGenomics, Inc. is a leading CLIA-certified clinical laboratory headquartered in Fort Myers, FL, specializing in cancer genetics testing. With a comprehensive oncology-focused testing menu, the company supports physicians in cancer diagnosis and treatment, offering products like the Early-stage NSCLC Panel and RaDaR® for personalized MRD detection. NeoGenomics collaborates globally with oncologists, pathologists, and pharmaceutical companies, contributing to cancer research. Its Pharma Services Division engages in clinical trials, showcasing a commitment to advancing cancer treatment. The company operates CAP-accredited and CLIA-certified laboratories internationally, including in the United Kingdom, Switzerland, and Singapore, emphasizing its global impact in cancer diagnostics and research. Questions is Why is Neogenomics Inc. Stock Price Dropping?

As of today, NeoGenomics, Inc.’s stock price stands at $16.951, reflecting a notable decrease of $3.55 or -17.31% from the previous close. It’s important to note the inherent volatility of stock prices, and checking real-time updates from reliable financial sources is advisable. Over the last three months, the stock has experienced a 14.37% decline. Examining the stock’s performance over the past year, it has ranged between $8.70 and $20.541, indicating a significant overall increase. Looking at the three-year timeframe, the stock has shown substantial growth, fluctuating between $6.00 and $61.571. NeoGenomics, Inc. currently has a market capitalization of $2.61 billion.

Why is NeoGenomics, Inc Stock Price Dropping?

Missed Guidance: NeoGenomics’ quarterly report revealed missed guidance, causing a stock price drop. CEO Mark Mallon left immediately, and the company lowered its financial forecast due to unexpected costs.

Internal Investigation: With outside counsel’s help, the company investigates its compliance with federal healthcare laws for some agreements. This covers fraud, waste, and abuse issues, and NeoGenomics set aside $10.5 million for possible losses from years of federal healthcare revenue.

Increased Operating Expenses: The company revealed that higher payroll and payroll-related costs drove decreased profit and increased operating expenses. The company acknowledged its cancer tests are biased towards older ones, while the trend is towards broader panels.

Class Action Lawsuit: A class action suit is filed against NeoGenomics and its leaders for securities bought from Feb 2020 to Apr 2022. The lawsuit alleges that the defendants made false and misleading statements or failed to disclose certain information.

Misrepresentation of Services: The suit accuses NeoGenomics of misleading investors by claiming to offer all cancer tests, including advanced ones. The company positioned itself as a leading lab for any cancer-related tests, giving it a competitive edge.

Violation of Federal Healthcare Laws: Moreover, NeoGenomics violated federal healthcare laws and regulations related to fraud, waste, and abuse. These allegations have added to the concerns of investors and have contributed to the decrease in the company’s stock price.

What large investors are doing with Neogenomics stock?

Here are details about large investors’ investments in NeoGenomics, Inc.

BlackRock Fund Advisors: BlackRock Fund Advisors is one of the largest shareholders of NeoGenomics, Inc. They own 18,544,576 shares, which is roughly 14.54% of the outstanding NEO shares.

Institutional Ownership: The institutional ownership of NeoGenomics, Inc. is 95.55%. Institutional investors typically include mutual funds, pension funds, and endowments.

Insider Ownership: The insider ownership of NeoGenomics, Inc. is 1.31%. Insiders are individuals who have access to confidential information about the company.

Alicia C. Olivo: Alicia C. Olivo, an insider at NeoGenomics, Inc., owns 37,140 shares of the company, valued at $49,083.

Please note that the actions of large investors can change rapidly based on a variety of factors, including the company’s performance, market conditions, and economic indicators. It’s always a good idea to check the latest updates from a reliable financial news source. Investing in the stock market always carries risk, so please make sure to do thorough research and consider seeking advice from financial advisors before making investment decisions.

What should common investors do with Neogenomics stocks?

Neogenomics Inc (NEO) is a company that provides oncology testing services, such as molecular diagnostics, immunohistochemistry, flow cytometry, and clinical trials. The company’s stock price has been volatile in the past year, reaching a 52-week high of $21.22 in November 2023, and a 52-week low of $8.71 in January 2023. As of December 28, 2023, the stock closed at $16.98, down 17.17% from the previous day.

With reporting net income loss (negative net income) for the last few quarters and current controversies, this stock does not fit into the principles of defensive investors.

Some analysts have expressed optimism about the company’s long-term prospects, citing its leadership position in the oncology testing market, its diversified portfolio of services, its investment in innovation and technology, and its potential to benefit from the growing demand for personalized cancer care. However, some analysts have also noted the challenges and risks that the company faces, such as increased competition, regulatory uncertainty, pricing pressure, and integration issues.

According to Yahoo Finance, the consensus among 11 analysts covering the stock is to buy, with a median target price of $21.27, implying a 25.3% upside from the current price. However, the target price range varies from $17 to $25, indicating a high degree of uncertainty and divergence among analysts.

Therefore, common investors should carefully weigh the pros and cons of investing in Neogenomics stocks, and do their due diligence before making any decisions

Synopsis

NeoGenomics, Inc., a prominent cancer genetics testing lab, has seen its stock price drop to $16.951 (-17.31%) due to challenges like missed guidance, CEO departure, increased expenses, and a healthcare compliance investigation. A class action lawsuit alleges misrepresentation and law violations. Large investors, including BlackRock, hold a substantial stake (14.54%). Analysts are cautiously optimistic, citing leadership in oncology testing, but risks include competition and regulatory uncertainties. The consensus among 11 analysts is to buy, with a target price of $21.27, implying a 25.3% upside, but investors are urged to carefully weigh the pros and cons before considering Neogenomics stocks.

Read Nike story at https://financeguide4u.com/nike-stock-price/

Read Apple story at https://financeguide4u.com/apple-stock-price/

If you have questions about stock investment, reach out to my space on quora to read Q&As. FInanceguide4u (quora.com)

Leave a Comment

Your email address will not be published. Required fields are marked *