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If You Had Bought Dynavax Technologies (NASDAQ:DVAX) Shares A Year Ago You'd Have Earned133% Returns

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Dynavax Technologies Corporation (NASDAQ:DVAX) share price has soared 133% in the last year. Most would be very happy with that, especially in just one year! Better yet, the share price has gained 180% in the last quarter. Zooming out, the stock is actually down 4.1% in the last three years.

View our latest analysis for Dynavax Technologies

Dynavax Technologies 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

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Over the last twelve months, Dynavax Technologies's revenue grew by 191%. That's well above most other pre-profit companies. And the share price has responded, gaining 133% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

NasdaqCM:DVAX Earnings and Revenue Growth July 8th 2020
NasdaqCM:DVAX Earnings and Revenue Growth July 8th 2020

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

It's nice to see that Dynavax Technologies shareholders have received a total shareholder return of 133% over the last year. That certainly beats the loss of about 21% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. Even so, be aware that Dynavax Technologies is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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@simplywallst.com.