Tarsus Pharmaceuticals (NASDAQ:TARS) investors are sitting on a loss of 40% if they invested a year ago
Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) shareholders should be happy to see the share price up 15% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 40% in the last year, well below the market return.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for Tarsus Pharmaceuticals
Tarsus Pharmaceuticals isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In just one year Tarsus Pharmaceuticals saw its revenue fall by 69%. If you think that's a particularly bad result, you're statistically on the money No surprise, then, that the share price fell 40% over the year. We would want to see improvements in the core business, and diminishing losses, before getting too excited about this one.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
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. You can see what analysts are predicting for Tarsus Pharmaceuticals in this interactive graph of future profit estimates.
A Different Perspective
We doubt Tarsus Pharmaceuticals shareholders are happy with the loss of 40% over twelve months. That falls short of the market, which lost 25%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 15%, 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 Tarsus Pharmaceuticals better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Tarsus Pharmaceuticals you should be aware of.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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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