Shareholders Are Thrilled That The GTEC Holdings (CVE:GTEC) Share Price Increased 242%

GTEC Holdings Ltd. (CVE:GTEC) shareholders might understandably be very concerned that the share price has dropped 33% in the last quarter. But that doesn't detract from the splendid returns of the last year. Indeed, the share price is up an impressive 242% in that time. So some might not be surprised to see the price retrace some. The real question is whether the business is trending in the right direction.

Check out our latest analysis for GTEC Holdings

Given that GTEC Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, GTEC Holdings' revenue grew by 64%. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 242% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. It might be well worthwhile taking a look at our free report on GTEC Holdings' earnings, revenue and cash flow.

A Different Perspective

GTEC Holdings shareholders should be happy with the total gain of 242% over the last twelve months. We regret to report that the share price is down 33% over ninety days. Shorter term share price moves often don't signify much about the business itself. 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. For instance, we've identified 3 warning signs for GTEC Holdings (1 doesn't sit too well with us) that you should be aware of.

GTEC Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

If you're looking for stocks to buy, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.