CASI Pharmaceuticals (NASDAQ:CASI) pulls back 22% this week, but still delivers shareholders solid 129% return over 1 year

It's been a soft week for CASI Pharmaceuticals, Inc. (NASDAQ:CASI) shares, which are down 22%. But that doesn't detract from the splendid returns of the last year. During that period, the share price soared a full 129%. So we think most shareholders won't be too upset about the recent fall. Only time will tell if there is still too much optimism currently reflected in the share price.

Although CASI Pharmaceuticals has shed US$22m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for CASI Pharmaceuticals

CASI Pharmaceuticals 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 would hope for good top-line growth to make up for the lack of earnings.

In the last year CASI Pharmaceuticals saw its revenue shrink by 47%. So we would not have expected the share price to rise 129%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free report showing analyst forecasts should help you form a view on CASI Pharmaceuticals

A Different Perspective

It's good to see that CASI Pharmaceuticals has rewarded shareholders with a total shareholder return of 129% in the last twelve months. Notably the five-year annualised TSR loss of 13% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the 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 4 warning signs for CASI Pharmaceuticals that you should be aware of.

CASI Pharmaceuticals 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.