Yahoo Finance Shareholders in Clarivate (NYSE:CLVT) have lost 60%, as stock drops 5.3% this past week
Taking the occasional loss comes part and parcel with investing on the stock market. And unfortunately for Clarivate Plc (NYSE:CLVT) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 60% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 43% in that time. Furthermore, it's down 33% in about a quarter. That's not much fun for holders.
With the stock having lost 5.3% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.
Check out our latest analysis for Clarivate
Because Clarivate 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Clarivate grew its revenue by 46% over the last year. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 60% in that time. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at Clarivate's financial health with this free report on its balance sheet.
A Different Perspective
The last twelve months weren't great for Clarivate shares, which performed worse than the market, costing holders 60%. The market shed around 25%, no doubt weighing on the stock price. The three-year loss of 13% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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. Case in point: We've spotted 1 warning sign for Clarivate you should be aware of.
We will like Clarivate better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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