Increasing losses over year doesn't faze investors as stock rallies 12% this past week
Lyra Therapeutics, Inc. (NASDAQ:LYRA) shareholders should be happy to see the share price up 23% in the last month. But that wasn't enough to see the company deliver market-beating returns over the year. Specifically, the stock returned 18% whereas the market is down , having returned (-18%) over the last year.
On a more encouraging note the company has added US$20m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.
See our latest analysis for Lyra Therapeutics
Lyra Therapeutics 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
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 consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Lyra Therapeutics will earn in the future (free profit forecasts).
A Different Perspective
Having lost 18% over the year, Lyra Therapeutics has generated a return within the same ballpark as the broader market. Given that the share price has continued to slide (by 1.1%) in the last three months, it's hard to know when we might see the bottom. Most people would be understandably disheartened by this sort of performance, given the lack of a long term history. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Lyra Therapeutics has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.
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 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.
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