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AgeX Therapeutics (NYSEMKT:AGE) Shareholders Booked A 40% Gain In The Last Year

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Simply Wall St
·3 min read
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Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the AgeX Therapeutics, Inc. (NYSEMKT:AGE) share price is up 40% in the last year, clearly besting the market return of around 23% (not including dividends). That's a solid performance by our standards! We'll need to follow AgeX Therapeutics for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for AgeX Therapeutics

We don't think AgeX Therapeutics' revenue of US$1,912,000 is enough to establish significant demand. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that AgeX Therapeutics has the funding to invent a new product before too long.

Companies that lack both meaningful revenue and profits are usually considered high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing.

AgeX Therapeutics had liabilities exceeding cash by US$6.8m when it last reported in September 2020, according to our data. That puts it in the highest risk category, according to our analysis. So the fact that the stock is up 132% in the last year shows that high risks can lead to high rewards, sometimes. It's clear more than a few people believe in the potential. The image below shows how AgeX Therapeutics' balance sheet has changed over time; if you want to see the precise values, simply click on the image.

debt-equity-history-analysis
debt-equity-history-analysis

In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Given that situation, many of the best investors like to check if insiders have been buying shares. It's often positive if so, assuming the buying is sustained and meaningful. You can click here to see if there are insiders buying.

A Different Perspective

AgeX Therapeutics boasts a total shareholder return of 40% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 15% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand AgeX Therapeutics better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with AgeX Therapeutics (including 3 which are a bit unpleasant) .

We will like AgeX Therapeutics 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.