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Would Shareholders Who Purchased AnaptysBio's (NASDAQ:ANAB) Stock Three Years Be Happy With The Share price Today?

Simply Wall St
·3 min read

Investing in stocks inevitably means buying into some companies that perform poorly. But the last three years have been particularly tough on longer term AnaptysBio, Inc. (NASDAQ:ANAB) shareholders. Regrettably, they have had to cope with a 56% drop in the share price over that period. And over the last year the share price fell 53%, so we doubt many shareholders are delighted. The falls have accelerated recently, with the share price down 30% in the last three months.

Check out our latest analysis for AnaptysBio

Given that AnaptysBio 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, AnaptysBio grew revenue at 19% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 16% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

The last twelve months weren't great for AnaptysBio shares, which cost holders 53%, while the market was up about 19%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 16% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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 - AnaptysBio has 3 warning signs (and 1 which can't be ignored) we think you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.