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The Bioanalytical Systems (NASDAQ:BASI) Share Price Is Up 521% And Shareholders Are Delighted

Simply Wall St

Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. You won't get it right every time, but when you do, the returns can be truly splendid. One such superstar is Bioanalytical Systems, Inc. (NASDAQ:BASI), which saw its share price soar 521% in three years. Also pleasing for shareholders was the 166% gain in the last three months.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for Bioanalytical Systems

Bioanalytical Systems isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

Bioanalytical Systems's revenue trended up 18% each year over three years. That's pretty nice growth. Some shareholders might think that the share price rise of 84% per year is a lucky result, considering the level of revenue growth. A hot stock like this is usually well worth taking a closer look at, as long as you don't let the fear of missing out (FOMO) impact your thinking.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

NasdaqCM:BASI Income Statement, November 4th 2019
NasdaqCM:BASI Income Statement, November 4th 2019

It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at our free report on Bioanalytical Systems's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Bioanalytical Systems has rewarded shareholders with a total shareholder return of 287% in the last twelve months. That gain is better than the annual TSR over five years, which is 18%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Bioanalytical Systems by clicking this link.

Bioanalytical Systems is not the only stock that insiders are buying. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.