Can You Imagine How Jubilant Therapeutics' (NASDAQ:PTCT) Shareholders Feel About Its 239% Share Price Gain?
It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. To wit, the PTC Therapeutics, Inc. (NASDAQ:PTCT) share price has flown 239% in the last three years. Most would be happy with that. Also pleasing for shareholders was the 25% gain in the last three months. But this could be related to the strong market, which is up 13% in the last three months.
See our latest analysis for Therapeutics
Therapeutics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years Therapeutics has grown its revenue at 21% annually. That's much better than most loss-making companies. Along the way, the share price gained 50% per year, a solid pop by our standards. This suggests the market has recognized the progress the business has made, at least to a significant degree. 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 how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
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. You can see what analysts are predicting for Therapeutics in this interactive graph of future profit estimates.
A Different Perspective
It's nice to see that Therapeutics shareholders have received a total shareholder return of 27% over the last year. That gain is better than the annual TSR over five years, which is 16%. 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. It's always interesting to track share price performance over the longer term. But to understand Therapeutics better, we need to consider many other factors. For example, we've discovered 2 warning signs for Therapeutics that you should be aware of before investing here.
Therapeutics 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.
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.
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