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The Quotient Technology (NYSE:QUOT) Share Price Is Down 30% So Some Shareholders Are Getting Worried

Simply Wall St
·3 mins read

Quotient Technology Inc. (NYSE:QUOT) shareholders should be happy to see the share price up 17% in the last quarter. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 30% in that half decade.

See our latest analysis for Quotient Technology

Because Quotient Technology 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over five years, Quotient Technology grew its revenue at 15% per year. That's a pretty good rate for a long time period. Shareholders have seen the share price fall at 6.9% per year, for five years: a poor performance. Clearly, the expectations from back then have not been satisfied. There is always a big risk of losing money yourself when you buy shares in a company that loses money.

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

NYSE:QUOT Income Statement, January 30th 2020
NYSE:QUOT Income Statement, January 30th 2020

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Quotient Technology will earn in the future (free profit forecasts).

A Different Perspective

Quotient Technology shareholders gained a total return of 1.2% during the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 6.9% per year, over five years. It could well be that the business is stabilizing. 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 Quotient Technology by clicking this link.

Quotient Technology 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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.