Introducing Regulus Therapeutics (NASDAQ:RGLS), The Stock That Zoomed 101% In The Last Year

Regulus Therapeutics Inc. (NASDAQ:RGLS) shareholders might be concerned after seeing the share price drop 10% in the last month. Despite this, the stock is a strong performer over the last year, no doubt about that. During that period, the share price soared a full 101%. So we think most shareholders won't be too upset about the recent fall. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

View our latest analysis for Regulus Therapeutics

Given that Regulus 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. 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.

In the last year Regulus Therapeutics saw its revenue shrink by 26%. We're a little surprised to see the share price pop 101% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. 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).

Take a more thorough look at Regulus Therapeutics' financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Regulus Therapeutics has rewarded shareholders with a total shareholder return of 101% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 15% per year over five years. 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. It's always interesting to track share price performance over the longer term. But to understand Regulus Therapeutics better, we need to consider many other factors. Take risks, for example - Regulus Therapeutics has 5 warning signs (and 2 which are concerning) we think you should know about.

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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