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The OPKO Health (NASDAQ:OPK) Share Price Is Up 179% And Shareholders Are Boasting About It

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Simply Wall St
·3 min read
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When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the OPKO Health, Inc. (NASDAQ:OPK) share price had more than doubled in just one year - up 179%. In the last week shares have slid back 3.1%. Unfortunately the longer term returns are not so good, with the stock falling 9.6% in the last three years.

Check out our latest analysis for OPKO Health

Given that OPKO Health didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Over the last twelve months, OPKO Health's revenue grew by 30%. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 179%. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free report showing analyst forecasts should help you form a view on OPKO Health

A Different Perspective

It's nice to see that OPKO Health shareholders have received a total shareholder return of 179% over the last year. That certainly beats the loss of about 8% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand OPKO Health better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with OPKO Health , and understanding them should be part of your investment process.

OPKO Health 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 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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