Can You Imagine How Elated Tesserent's (ASX:TNT) Shareholders Feel About Its 415% Share Price Gain?

For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. For example, Tesserent Limited (ASX:TNT) has generated a beautiful 415% return in just a single year. In the last week shares have slid back 1.4%. And shareholders have also done well over the long term, with an increase of 360% in the last three years.

View our latest analysis for Tesserent

Tesserent isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Tesserent saw its revenue grow by 283%. That's stonking growth even when compared to other loss-making stocks. But the share price has really rocketed in response gaining 415% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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 Tesserent's earnings, revenue and cash flow.

A Different Perspective

Pleasingly, Tesserent's total shareholder return last year was 415%. That's better than the annualized TSR of 66% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Tesserent has 3 warning signs (and 2 which don't sit too well with us) we think you should know about.

Tesserent is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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