Yahoo Finance Intellia Therapeutics (NASDAQ:NTLA shareholders incur further losses as stock declines 9.9% this week, taking three-year losses to 65%
Investing in stocks inevitably means buying into some companies that perform poorly. But the long term shareholders of Intellia Therapeutics, Inc. (NASDAQ:NTLA) have had an unfortunate run in the last three years. Unfortunately, they have held through a 65% decline in the share price in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 31% lower in that time. Even worse, it's down 17% in about a month, which isn't fun at all.
After losing 9.9% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
See our latest analysis for Intellia Therapeutics
Because Intellia Therapeutics made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope 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 three years, Intellia Therapeutics saw its revenue grow by 2.3% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. It's likely this weak growth has contributed to an annualised return of 18% for the last three years. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Intellia Therapeutics is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Intellia Therapeutics stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
Investors in Intellia Therapeutics had a tough year, with a total loss of 31%, against a market gain of about 28%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. For instance, we've identified 2 warning signs for Intellia Therapeutics that you should be aware of.
If you are like me, then you will 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 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.
