Yahoo Finance Akoya Biosciences (NASDAQ:AKYA) investors are sitting on a loss of 10% if they invested a year ago
It's normal to be annoyed when stock you own has a declining share price. But in the short term the market is a voting machine, and the share price movements may not reflect the underlying business performance. The Akoya Biosciences, Inc. (NASDAQ:AKYA) share price is down 10% in the last year. But that actually beats the market decline of 22%. Akoya Biosciences hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. It's down 19% in about a quarter.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for Akoya Biosciences
Akoya Biosciences 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last twelve months, Akoya Biosciences increased its revenue by 34%. We think that is pretty nice growth. While the share price drop of 10% over twelve months certainly won't delight holders, it's not bad in a weak market. We'd venture the revenue growth helped inspire some faith from holders. So we definitely think this is a good candidate for further research; share price down, revenue up.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
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 it makes a lot of sense to check out what analysts think Akoya Biosciences will earn in the future (free profit forecasts).
A Different Perspective
Given that the broader market dropped 22% over the year, the fact that Akoya Biosciences shareholders were down 10% isn't so bad. Things weren't so bad until the last three months, when the stock dropped 19%. It's always a worry to see a share price decline like that, but at the same time, it is an unavoidable part of investing. In times of uncertainty we usually try to focus on the long term fundamental business metrics. 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. Case in point: We've spotted 2 warning signs for Akoya Biosciences you should be aware of.
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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