The Celldex Therapeutics (NASDAQ:CLDX) Share Price Is Up 626% And Shareholders Are Delighted

It might be of some concern to shareholders to see the Celldex Therapeutics, Inc. (NASDAQ:CLDX) share price down 16% in the last month. But over the last year the share price has taken off like one of Elon Musk's rockets. In that time, shareholders have had the pleasure of a 626% boost to the share price. So we wouldn't blame sellers for taking some profits. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).

Anyone who held for that rewarding ride would probably be keen to talk about it.

See our latest analysis for Celldex Therapeutics

Celldex Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 does expect good top-line growth.

Over the last twelve months, Celldex Therapeutics' revenue grew by 1.8%. That's not great considering the company is losing money. So it's truly surprising that the share price rocketed 626% in a single year. We're happy that investors have made money, but we can't help questioning whether the rise is sustainable. This is an example of the huge profits some lucky shareholders occasionally make on growth stocks.

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

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Celldex Therapeutics

A Different Perspective

We're pleased to report that Celldex Therapeutics shareholders have received a total shareholder return of 626% over one year. There's no doubt those recent returns are much better than the TSR loss of 14% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Celldex Therapeutics better, we need to consider many other factors. For instance, we've identified 5 warning signs for Celldex Therapeutics (2 are potentially serious) that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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