Conestoga Capital Advisors released its second-quarter 2025 investor letter, noting a 4.76% return for the Conestoga Small Cap Composite, compared to 11.97% for the Russell 2000 Growth Index. The letter highlights Neogen Corporation (NASDAQ: NEOG), which saw a 9.21% one-month return and closed at $5.22 per share on July 25, 2025, with a market capitalization of $1.133 billion.

In the same investor letter, Conestoga Capital Advisors expressed concerns about Neogen Corporation (NASDAQ: NEOG), citing disappointing FY3Q results, lowered FY4Q guidance, and the search for a new CEO. The company’s fundamental challenges, end market weakness, and management changes led to the decision to exit the stock during the quarter.

Neogen Corporation (NASDAQ: NEOG) is not among the 30 Most Popular Stocks Among Hedge Funds, with 15 hedge fund portfolios holding the stock at the end of the first quarter. While acknowledging its investment potential, Conestoga Capital Advisors believes certain AI stocks offer greater upside potential and less downside risk. For those seeking an undervalued AI stock, a free report on the best short-term AI stock is available.

Read more at Yahoo Finance: Here’s Why Conestoga Capital Advisors Sold Neogen Corp. (NEOG)