FORT MYERS, FL—Alicia C. Olivo, General Counsel at NeoGenomics Inc . (NASDAQ:NEO), recently sold 5,175 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $15.3575, totaling approximately $79,475.
Following this transaction, Olivo retains ownership of 37,129 shares, as noted in the filing. The sale was conducted under a Rule 10b5-1 trading plan, a pre-arranged plan that allows insiders to sell stocks at predetermined times.
The filing also detailed Olivo's holdings of stock options and performance stock units, which include a variety of expiration dates and exercise prices. However, these derivative securities were not part of the recent transaction.
In other recent news, Neogenomics has displayed strong performance in its third-quarter earnings, with total revenues increasing by 10% to $168 million. This growth was primarily driven by a 14% surge in clinical services revenue and a significant 305% rise in adjusted EBITDA, reaching $13 million. The company's core clinical services business grew by 14% year-over-year, attributed to a 9% increase in volume and a 5% rise in price.
BTIG has maintained its Buy rating and $21 price target on Neogenomics, highlighting the company's strong performance. Neogenomics has also confirmed its revenue growth forecast for 2024, anticipating an 11-13% year-over-year increase, and raised its 2024 Adjusted EBITDA guidance.
The company is preparing to introduce its NEO Pan Tracer liquid biopsy blood test panel in the first half of 2025 and is also gearing up for the launch of several other new tests and a digital platform, NEO Helix. Despite some industry challenges and a 10% decline in ADX revenue in Q3 due to international site closures and restructuring, Neogenomics remains optimistic about future growth. With $388 million in cash and marketable securities, the company plans to retire $201 million in convertible notes due in May 2025 and is exploring strategic acquisitions to enhance market reach and capabilities.
InvestingPro Insights
As NeoGenomics Inc. (NASDAQ:NEO) navigates its current market position, recent InvestingPro data provides additional context to the insider sale by General Counsel Alicia C. Olivo. The company's market capitalization stands at $1.96 billion, reflecting its significant presence in the genomic testing sector.
Despite the recent stock sale by an insider, NeoGenomics shows promising signs of growth. An InvestingPro Tip indicates that net income is expected to grow this year, which could be a positive signal for investors. This aligns with another tip suggesting that analysts predict the company will be profitable this year, potentially marking a turnaround from its current unprofitable status over the last twelve months.
However, it's worth noting that the stock has taken a significant hit over the last week, with a 1-week price total return of -8.08%. This recent downturn might explain the timing of Olivo's stock sale, although it's important to remember that insider transactions can occur for various personal reasons unrelated to company performance.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 7 more tips available for NeoGenomics. These extra tips could provide valuable context for understanding the company's financial health and future prospects in light of recent insider activity.
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