REGENXBIO Inc. (NASDAQ:RGNX) shareholders might be concerned after seeing the share price drop 23% in the last quarter. But in three years the returns have been great. In fact, the share price is up a full 142% compared to three years ago. After a run like that some may not be surprised to see prices moderate. The thing to consider is whether the underlying business is doing well enough to support the current price.
Given that REGENXBIO 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
REGENXBIO's revenue trended up 79% each year over three years. That's well above most pre-profit companies. Along the way, the share price gained 34% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at REGENXBIO's financial health with this free report on its balance sheet.
A Different Perspective
Over the last year, REGENXBIO shareholders took a loss of 37%. In contrast the market gained about 13%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Investors are up over three years, booking 34% per year, much better than the more recent returns. 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. You could get a better understanding of REGENXBIO's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
We will like REGENXBIO 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.
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