Stock Analysis

Introducing SIGA Technologies (NASDAQ:SIGA), The Stock That Soared 880% In The Last Five Years

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NasdaqGM:SIGA
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It hasn't been the best quarter for SIGA Technologies, Inc. (NASDAQ:SIGA) shareholders, since the share price has fallen 12% in that time. But over five years returns have been remarkably great. In that time, the share price has soared some 880% higher! So it might be that some shareholders are taking profits after good performance. But the real question is whether the business fundamentals can improve over the long term.

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

View our latest analysis for SIGA Technologies

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the five years of share price growth, SIGA Technologies moved from a loss to profitability. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
NasdaqGM:SIGA Earnings Per Share Growth February 22nd 2021

Dive deeper into SIGA Technologies' key metrics by checking this interactive graph of SIGA Technologies's earnings, revenue and cash flow.

A Different Perspective

SIGA Technologies' TSR for the year was broadly in line with the market average, at 35%. It has to be noted that the recent return falls short of the 58% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for SIGA Technologies (of which 1 is concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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