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It is doubtless a positive to see that the Berry Corporation (NASDAQ:BRY) share price has gained some 65% in the last three months. But that doesn't change the fact that the returns over the last year have been disappointing. Specifically, the stock price slipped by 58% in that time. It's not that amazing to see a bounce after a drop like that. Arguably, the fall was overdone.
Given that Berry 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Berry's revenue didn't grow at all in the last year. In fact, it fell 3.3%. That looks pretty grim, at a glance. In the absence of profits, it's not unreasonable that the share price fell 58%. Fingers crossed this is the low ebb for the stock. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
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. If you are thinking of buying or selling Berry stock, you should check out this free report showing analyst profit forecasts.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between Berry's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Berry shareholders, and that cash payout explains why its total shareholder loss of 55%, over the last year, isn't as bad as the share price return.
A Different Perspective
While Berry shareholders are down 55% for the year, the market itself is up 7.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 65%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Berry better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Berry you should be aware of, and 1 of them makes us a bit uncomfortable.
Berry 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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