If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the last three years have been particularly tough on longer term ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) shareholders. Sadly for them, the share price is down 51% in that time. But it's up 6.1% in the last week.
ANI 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last three years, ANI Pharmaceuticals saw its revenue grow by 2.8% per year, compound. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 15% during the period. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We consider it positive that insiders have made significant purchases in the last year. 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 ANI Pharmaceuticals will earn in the future (free profit forecasts).
A Different Perspective
ANI Pharmaceuticals shareholders are up 12% for the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 6% endured over half a decade. It could well be that the business is stabilizing. 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. For instance, we've identified 1 warning sign for ANI Pharmaceuticals that 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.
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 (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In This StoryANIP
Latest Nasdaq-Listed Companies Videos
- Trade Alert: The President Of United Airlines Holdings, Inc. (NASDAQ:UAL), Brett Hart, Has Sold Some Shares Recently
- Vaxart, Inc. (NASDAQ:VXRT) Is Expected To Breakeven In The Near Future
- A MiMedx Group, Inc. (NASDAQ:MDXG) insider lowered their holding by 11% earlier this year
- Have Insiders Sold Broadcom Inc. (NASDAQ:AVGO) Shares Recently?