RAPT Therapeutics' (NASDAQ:RAPT) Stock Price Has Reduced 56% In The Past Year

The nature of investing is that you win some, and you lose some. And there's no doubt that RAPT Therapeutics, Inc. (NASDAQ:RAPT) stock has had a really bad year. To wit the share price is down 56% in that time. We wouldn't rush to judgement on RAPT Therapeutics because we don't have a long term history to look at. The falls have accelerated recently, with the share price down 43% in the last three months.

See our latest analysis for RAPT Therapeutics

Given that RAPT Therapeutics 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

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. You can see what analysts are predicting for RAPT Therapeutics in this interactive graph of future profit estimates.

A Different Perspective

Given that the market gained 22% in the last year, RAPT Therapeutics shareholders might be miffed that they lost 56%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 43%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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. Take risks, for example - RAPT Therapeutics has 5 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

RAPT Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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