Yahoo Finance Silk Road Medical (NASDAQ:SILK shareholders incur further losses as stock declines 4.0% this week, taking one-year losses to 30%
It's easy to match the overall market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors in Silk Road Medical, Inc (NASDAQ:SILK) have tasted that bitter downside in the last year, as the share price dropped 30%. That falls noticeably short of the market decline of around 25%. On the bright side, the stock is actually up 19% in the last three years. Even worse, it's down 8.1% in about a month, which isn't fun at all. However, we note the price may have been impacted by the broader market, which is down 9.2% in the same time period.
If the past week is anything to go by, investor sentiment for Silk Road Medical isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
View our latest analysis for Silk Road Medical
Silk Road Medical wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Silk Road Medical grew its revenue by 27% over the last year. We think that is pretty nice growth. Meanwhile, the share price is down 30% over twelve months, which is disappointing given the progress made. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
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. 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
Silk Road Medical shareholders are down 30% for the year, falling short of the market return. Meanwhile, the broader market slid about 25%, likely weighing on the stock. Investors are up over three years, booking 6% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. It's always interesting to track share price performance over the longer term. But to understand Silk Road Medical better, we need to consider many other factors. For example, we've discovered 1 warning sign for Silk Road Medical that you should be aware of before investing here.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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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