Aspen Aerogels (NYSE:ASPN investor one-year losses grow to 58% as the stock sheds US$51m this past week

Investing in stocks comes with the risk that the share price will fall. Unfortunately, shareholders of Aspen Aerogels, Inc. (NYSE:ASPN) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 58%. We note that it has not been easy for shareholders over three years, either; the share price is down 41% in that time. On top of that, the share price is down 7.6% in the last week.

With the stock having lost 7.6% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

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Because Aspen Aerogels 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last year Aspen Aerogels saw its revenue grow by 11%. That's not a very high growth rate considering it doesn't make profits. It's likely this muted growth has contributed to the share price decline of 58% in the last year. We'd want to see evidence that future revenue growth will be stronger before getting too interested. Of course, the market can be too impatient at times. Why not take a closer look at this one so you're ready to pounce if growth does accelerate.

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. So it makes a lot of sense to check out what analysts think Aspen Aerogels will earn in the future (free profit forecasts).

A Different Perspective

Aspen Aerogels shareholders are down 58% for the year, but the market itself is up 21%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 6% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.

Aspen Aerogels is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.