Strong week for Xeris Biopharma Holdings (NASDAQ:XERS) shareholders doesn't alleviate pain of one-year loss
Xeris Biopharma Holdings, Inc. (NASDAQ:XERS) shareholders will doubtless be very grateful to see the share price up 83% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 26% in the last year, significantly under-performing the market.
Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.
Check out our latest analysis for Xeris Biopharma Holdings
Xeris Biopharma Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Xeris Biopharma Holdings grew its revenue by 122% over the last year. That's well above most other pre-profit companies. Given the revenue growth, the share price drop of 26% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our brains have evolved to think in linear fashion, so there's value in learning to recognize exponential growth. We are, in some ways, simply the wisest of the monkeys.
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. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on Xeris Biopharma Holdings
A Different Perspective
Xeris Biopharma Holdings shareholders are down 26% for the year, even worse than the market loss of 9.8%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 83%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Xeris Biopharma Holdings better, we need to consider many other factors. Even so, be aware that Xeris Biopharma Holdings is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...
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 American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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