AnaptysBio (NASDAQ:ANAB investor three-year losses grow to 55% as the stock sheds US$261m this past week

Investing in stocks inevitably means buying into some companies that perform poorly. Long term AnaptysBio, Inc. (NASDAQ:ANAB) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 55% drop in the share price over that period. In the last ninety days we've seen the share price slide 60%.

After losing 36% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

See our latest analysis for AnaptysBio

Given that AnaptysBio 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 hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last three years, AnaptysBio's revenue dropped 43% per year. That means its revenue trend is very weak compared to other loss making companies. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 16% per year over that time. Bagholders or 'baggies' are people who buy more of a stock as the price collapses. They are then left 'holding the bag' if the shares turn out to be worthless. It could be a while before the company repays long suffering shareholders with share price gains.

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

AnaptysBio is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.

A Different Perspective

Investors in AnaptysBio had a tough year, with a total loss of 15%, against a market gain of about 31%. 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 1.2% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 5 warning signs for AnaptysBio (1 is significant) that you should be aware of.

We will like AnaptysBio better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider 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.