Yahoo Finance Arrowhead Pharmaceuticals' (NASDAQ:ARWR) Incredible 2370% Share Price Run Shows What Is Possible With Stocks
It hasn't been the best quarter for Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) shareholders, since the share price has fallen 23% in that time. But that doesn't displace its brilliant performance over three years. Over that time, we've been excited to watch the share price climb an impressive 2370%. So you might argue that the recent reduction in the share price is unremarkable in light of the longer term performance. Only time will tell if there is still too much optimism currently reflected in the share price.
It really delights us to see such great share price performance for investors.
View our latest analysis for Arrowhead Pharmaceuticals
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Arrowhead Pharmaceuticals became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Arrowhead Pharmaceuticals's earnings, revenue and cash flow.
A Different Perspective
It's good to see that Arrowhead Pharmaceuticals has rewarded shareholders with a total shareholder return of 97% in the last twelve months. That gain is better than the annual TSR over five years, which is 39%. Therefore it seems like sentiment around the company has been positive lately. 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 Arrowhead Pharmaceuticals is showing 2 warning signs in our investment analysis , you should know about...
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 US exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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