Did You Miss Urb-it's (STO:URBIT) Impressive 168% Share Price Gain?

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Urb-it AB (publ) (STO:URBIT) share price has soared 168% return in just a single year. And in the last month, the share price has gained 44%. We note that Urb-it reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report. In contrast, the longer term returns are negative, since the share price is 62% lower than it was three years ago.

Check out our latest analysis for Urb-it

Urb-it wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Urb-it saw its revenue grow by 109%. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 168% in response. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Urb-it's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Urb-it shareholders have gained 168% (in total) over the last year. That certainly beats the loss of about 14% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. It's always interesting to track share price performance over the longer term. But to understand Urb-it better, we need to consider many other factors. Even so, be aware that Urb-it is showing 5 warning signs in our investment analysis , and 1 of those is significant...

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 SE 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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