ReNeuron Group plc (LON:RENE) shareholders might be concerned after seeing the share price drop 30% in the last quarter. But that doesn’t change the fact that the returns over the last year have been very strong. Like an eagle, the share price soared 164% in that time. So we think most shareholders won’t be too upset about the recent fall. Only time will tell if there is still too much optimism currently reflected in the share price.
Given that ReNeuron Group 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last twelve months, ReNeuron Group’s revenue grew by 203%. That’s a head and shoulders above most loss-making companies. And the share price has responded, gaining 164% 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.
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling ReNeuron Group stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
It’s nice to see that ReNeuron Group shareholders have received a total shareholder return of 164% over the last year. There’s no doubt those recent returns are much better than the TSR loss of 17% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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 ReNeuron Group by clicking this link.
ReNeuron Group 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 GB exchanges.
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