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Are Investors Unfairly Punishing NeoGenomics Inc. (NASDAQ:NEO)?

NeoGenomics Inc. (NASDAQ:NEO) shares traded higher over the last trading session, gaining 0.81% on 05/28/21. The shares fell to a low of $40.73 before closing at $41.03. Intraday shares traded counted 0.56 million, which was 37.14% higher than its 30-day average trading volume of 889.10K. NEO’s previous close was $40.70 while the outstanding shares total 116.20M. The firm has a beta of 0.69. The stock’s Relative Strength Index (RSI) is 46.09, with weekly volatility at 2.75% and ATR at 1.85. The NEO stock’s 52-week price range has touched low of $25.19 and a $61.57 high.

Investors have identified the Diagnostics & Research company NeoGenomics Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $4.80 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

NeoGenomics Inc. (NEO) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 942.73 million total, with 67.75 million as their total liabilities.

NEO were able to record -13.62 million as free cash flow during the 07/27/2021 quarter of the year, this saw their quarterly net cash flow reduce by 372.46 million. In cash movements, the company had a total of 2.21 million as operating cash flow.

Potential earnings growth for NeoGenomics Inc. (NEO)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/27/2021 quarter of the year, NeoGenomics Inc. recorded a total of 115.53 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 8.23% coming in sequential stages and their sales for the 07/27/2021 quarter reducing by -9.06%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 73.96 million trying to sell their products during the last quarter, with the result yielding a gross income of 41.57 million. This allows shareholders to hold on to 116.20M with the recently reported earning now reading -0.19 cents per share. This is a figure that compared to analyst’s prediction for their 07/27/2021 (-0.06 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.11 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NEO sounds very interesting.

Is the stock of NEO attractive?

In related news, President, Clinical Services, SHOVLIN ROBERT J. sold 130,604 shares of the company’s stock in a transaction that recorded on May 25. The sale was performed at an average price of 39.31, for a total value of 5,134,043. As the sale deal closes, the Director, JONES STEVEN C now sold 25,000 shares of the company’s stock, valued at 1,291,750. Also, Chief Medical Officer, Weiss Lawrence Martin sold 20,200 shares of the company’s stock in a deal that was recorded on Dec 14. The shares were price at an average price of 51.06 per share, with a total market value of 1,031,412. Following this completion of acquisition, the VP and Chief Culture Officer, BALLIET JENNIFER now holds 15,000 shares of the company’s stock, valued at 749,850. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.90%.

11 out of 12 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on NeoGenomics Inc.. 0 analysts has assigned a Sell rating on the NEO stock. The 12-month mean consensus price target for the company’s shares has been set at $57.50.

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