NeoGenomics Earnings: Analysts Lower Price Target to $8.72 Amid Mixed Opinions on Business Prospects

NeoGenomics' Q1 results showed revenues in line with expectations at $181m, but statutory losses ballooned to $0.35 per share. Analysts have updated their earnings model, with revenue forecasts for 2025 downgraded to $726.2m, a 5.4% increase from the past 12 months. Per-share losses are predicted to increase to $0.88. The average price target fell 21% to $8.72, with a range of estimates suggesting a diverse view on the company's valuation.

NeoGenomics, Inc. (NASDAQ:NEO) released its Q1 2025 results, showing revenues in line with expectations at $181 million, but statutory losses ballooned to $0.35 per share. The company's stock saw unusually-high trading volume on Wednesday, with approximately 3,612,037 shares changing hands, an increase of 93% from the previous session's volume of 1,876,367 shares [1].

Analysts have updated their earnings models, with revenue forecasts for 2025 downgraded to $726.2 million, a 5.4% increase from the past 12 months. Per-share losses are predicted to increase to $0.88. The average price target fell 21% to $8.72, with a range of estimates suggesting a diverse view on the company's valuation [2].

The company's organic revenue growth remained relatively stable at approximately 8% in the second quarter of 2025 compared to 7.5% in the first quarter. This stability resulted from 13% organic growth (16% reported) in the Clinical segment being offset by a 26% decline in the Non-Clinical segment. NeoGenomics reported adjusted gross margin down 190 basis points year-over-year, primarily driven by the Pathline acquisition, while adjusted EBITDA margin decreased 70 basis points compared to the same period last year [2].

In related news, CFO Jeffrey Scott Sherman purchased 20,000 shares of the company's stock in a transaction on Friday, May 2nd, indicating executive confidence in the company's future performance [1]. CEO Anthony P. Zook also purchased 18,900 shares of the company's stock in a transaction on Tuesday, May 6th [1].

Several institutional investors have recently added to or reduced their stakes in NEO. First Light Asset Management LLC raised its position in NeoGenomics by 90.8% during the 1st quarter, while Samjo Management LLC purchased a new position in shares of NeoGenomics during the 1st quarter worth about $5,970,000 [1].

Nine research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $13.56 [1].

References:
[1] https://www.marketbeat.com/instant-alerts/neogenomics-nasdaqneo-sees-strong-trading-volume-should-you-buy-2025-07-30/
[2] https://www.investing.com/news/analyst-ratings/neogenomics-stock-price-target-lowered-to-8-at-needham-on-weak-guidance-93CH-4158248