The Intra-Cellular Therapies (NASDAQ:ITCI) Share Price Is Up 99% And Shareholders Are Holding On

By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) shareholders have seen the share price rise 99% over three years, well in excess of the market return (52%, not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 63%.

See our latest analysis for Intra-Cellular Therapies

Intra-Cellular Therapies 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Intra-Cellular Therapies saw its revenue grow at 109% per year. That's much better than most loss-making companies. The share price rise of 26% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. So now might be the perfect time to put Intra-Cellular Therapies on your radar. A window of opportunity may reveal itself with time, if the business can trend to profitability.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Intra-Cellular Therapies stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Intra-Cellular Therapies has rewarded shareholders with a total shareholder return of 63% in the last twelve months. That gain is better than the annual TSR over five years, which is 5%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 Intra-Cellular Therapies that you should be aware of.

We will like Intra-Cellular Therapies better if we see some big insider buys. While we wait, check out this free list of growing companies 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 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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