The Omeros (NASDAQ:OMER) Share Price Has Gained 31% And Shareholders Are Hoping For More
It hasn't been the best quarter for Omeros Corporation (NASDAQ:OMER) shareholders, since the share price has fallen 18% in that time. But at least the stock is up over the last three years. Arguably you'd have been better off buying an index fund, because the gain of 31% in three years isn't amazing.
Check out our latest analysis for Omeros
Omeros isn't a profitable company, so 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. 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.
Omeros's revenue trended up 7.9% each year over three years. That's not a very high growth rate considering it doesn't make profits. It's probably fair to say that the modest growth is reflected in the modest share price gain of 9.3% per year. A closer look at the revenue and profit trends could uncover help us understand if the company will be profitable in the future.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Omeros stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
While the broader market gained around 6.2% in the last year, Omeros shareholders lost 26%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 2.5%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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 Omeros by clicking this link.
Omeros 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.
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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.
