Announcing: Polygiene AB (publ.) (STO:POLYG) Stock Soared An Exciting 319% In The Last Year

Polygiene AB (publ.) (STO:POLYG) shareholders might be concerned after seeing the share price drop 23% in the last quarter. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In that time, shareholders have had the pleasure of a 319% boost to the share price. So the recent fall isn't enough to negate the good performance. The real question is whether the fundamental business performance can justify the strong increase over the long term.

View our latest analysis for Polygiene AB (publ.)

Because Polygiene AB (publ.) made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Polygiene AB (publ.) grew its revenue by 12% last year. That's not great considering the company is losing money. So the 319% gain in just twelve months is completely unexpected. It's great to see that some have made big profits, but we aren't so sure that the increase is justified. This is an example of the huge profits some lucky shareholders occasionally make on growth stocks.

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

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. You can see what analysts are predicting for Polygiene AB (publ.) in this interactive graph of future profit estimates.

A Different Perspective

It's nice to see that Polygiene AB (publ.) shareholders have gained 319% (in total) over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 35%. Given the track record of solid returns over varying time frames, it might be worth putting Polygiene AB (publ.) on your watchlist. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Polygiene AB (publ.) is showing 2 warning signs in our investment analysis , you should know about...

Polygiene AB (publ.) 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 SE exchanges.

When trading Polygiene AB (publ.) or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide 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@simplywallst.com.