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Some BidEnergy Limited (ASX:BID) shareholders are probably rather concerned to see the share price fall 51% over the last three months. But that doesn't detract from the splendid returns of the last year. We're very pleased to report the share price shot up 198% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.
View our latest analysis for BidEnergy
BidEnergy isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last twelve months, BidEnergy's revenue grew by 11%. That's not great considering the company is losing money. In contrast, the share price took off during the year, gaining 198%. We're happy that investors have made money, though we wonder if the increase will be sustained. It's quite likely that the market is considering other factors, not just revenue growth.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on BidEnergy's earnings, revenue and cash flow.
A Different Perspective
BidEnergy shareholders should be happy with the total gain of 198% over the last twelve months. We regret to report that the share price is down 51% over ninety days. Shorter term share price moves often don't signify much about the business itself. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of BidEnergy by clicking this link.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.