The NanoXplore (CVE:GRA) Share Price Is Up 208% And Shareholders Are Boasting About It
Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the NanoXplore Inc. (CVE:GRA) share price had more than doubled in just one year - up 208%. Also pleasing for shareholders was the 47% gain in the last three months. Looking back further, the stock price is 99% higher than it was three years ago.
View our latest analysis for NanoXplore
Because NanoXplore made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.
NanoXplore actually shrunk its revenue over the last year, with a reduction of 32%. So we would not have expected the share price to rise 208%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
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. This free report showing analyst forecasts should help you form a view on NanoXplore
A Different Perspective
Pleasingly, NanoXplore's total shareholder return last year was 208%. That's better than the annualized TSR of 26% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand NanoXplore better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for NanoXplore (of which 1 makes us a bit uncomfortable!) you should know about.
NanoXplore is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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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