Shareholders Are Thrilled That The Xtant Medical Holdings (NYSEMKT:XTNT) Share Price Increased 186%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Xtant Medical Holdings, Inc. (NYSEMKT:XTNT). Its share price is already up an impressive 186% in the last twelve months. Shareholders are also celebrating an even better 225% rise, over the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Zooming out, the stock is actually down 33% in the last three years.

See our latest analysis for Xtant Medical Holdings

Given that Xtant Medical 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Xtant Medical Holdings actually shrunk its revenue over the last year, with a reduction of 18%. So we would not have expected the share price to rise 186%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

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

If you are thinking of buying or selling Xtant Medical Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Xtant Medical Holdings shareholders have received a total shareholder return of 186% over the last year. Notably the five-year annualised TSR loss of 14% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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 Xtant Medical Holdings is showing 3 warning signs in our investment analysis , and 2 of those shouldn't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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