Yahoo Finance The Headwater Exploration (TSE:HWX) Share Price Is Up 170% And Shareholders Are Boasting About It
Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For instance the Headwater Exploration Inc. (TSE:HWX) share price is 170% higher than it was three years ago. How nice for those who held the stock! It's also good to see the share price up 13% over the last quarter. But this could be related to the strong market, which is up 12% in the last three months.
View our latest analysis for Headwater Exploration
Given that Headwater Exploration 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 3 years Headwater Exploration saw its revenue shrink by 3.4% per year. So we wouldn't have expected the share price to gain 39% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.
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. You can see what analysts are predicting for Headwater Exploration in this interactive graph of future profit estimates.
A Different Perspective
We're pleased to report that Headwater Exploration shareholders have received a total shareholder return of 92% over one year. That's better than the annualised return of 13% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Headwater Exploration is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...
Headwater Exploration 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 CA 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.
