Did You Miss AGM Group Holdings’s (NASDAQ:AGMH) 84% Share Price Gain?

While AGM Group Holdings Inc. (NASDAQ:AGMH) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 20% in the last quarter. While that might be a setback, it doesn’t negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 84%.

See our latest analysis for AGM Group Holdings

Given that AGM Group 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. 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 AGM Group Holdings saw its revenue shrink by 11%. Despite the lack of revenue growth, the stock has returned a solid 84% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.

NasdaqCM:AGMH Income Statement, April 27th 2019
NasdaqCM:AGMH Income Statement, April 27th 2019

We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It’s always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

It’s nice to see that AGM Group Holdings shareholders have gained 84% over the last year. We regret to report that the share price is down 20% over ninety days. Shorter term share price moves often don’t signify much about the business itself. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

Of course AGM Group Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.