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Did You Miss Corero Network Security's (LON:CNS) Impressive 163% Share Price Gain?

Simply Wall St
·3 min read

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Corero Network Security plc (LON:CNS) share price has soared 163% in the last year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 73% over the last quarter. Unfortunately the longer term returns are not so good, with the stock falling 19% in the last three years.

See our latest analysis for Corero Network Security

Corero Network Security isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Corero Network Security actually shrunk its revenue over the last year, with a reduction of 2.4%. We're a little surprised to see the share price pop 163% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on Corero Network Security

A Different Perspective

It's nice to see that Corero Network Security shareholders have received a total shareholder return of 163% over the last year. That certainly beats the loss of about 4.1% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Corero Network Security better, we need to consider many other factors. Take risks, for example - Corero Network Security has 4 warning signs we think you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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@simplywallst.com.