Alpine Immune Sciences (NASDAQ:ALPN) pulls back 14% this week, but still delivers shareholders favorable 14% CAGR over 3 years
Alpine Immune Sciences, Inc. (NASDAQ:ALPN) shareholders might be concerned after seeing the share price drop 14% in the last week. But we wouldn't complain about the gain over the last three years. In fact the stock is up 50%, which is better than the market return of 44%.
Since the long term performance has been good but there's been a recent pullback of 14%, let's check if the fundamentals match the share price.
Check out our latest analysis for Alpine Immune Sciences
Because Alpine Immune Sciences made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over the last three years Alpine Immune Sciences has grown its revenue at 106% annually. That's much better than most loss-making companies. The share price rise of 14% 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 Alpine Immune Sciences on your radar. If the company is trending towards profitability then it could be very interesting.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Alpine Immune Sciences in this interactive graph of future profit estimates.
A Different Perspective
The last twelve months weren't great for Alpine Immune Sciences shares, which performed worse than the market, costing holders 31%. The market shed around 9.8%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 14% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. It's always interesting to track share price performance over the longer term. But to understand Alpine Immune Sciences better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Alpine Immune Sciences (of which 1 shouldn't be ignored!) you should know about.
Alpine Immune Sciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
