Yahoo Finance BTRS Holdings (NASDAQ:BTRS) one-year losses have grown faster than shareholder returns have fallen, but the stock advances 5.0% this past week
Investing in stocks comes with the risk that the share price will fall. Anyone who held BTRS Holdings Inc. (NASDAQ:BTRS) over the last year knows what a loser feels like. To wit the share price is down 63% in that time. We wouldn't rush to judgement on BTRS Holdings because we don't have a long term history to look at. Furthermore, it's down 26% in about a quarter. That's not much fun for holders.
Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.
See our latest analysis for BTRS Holdings
BTRS Holdings 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
BTRS Holdings grew its revenue by 21% over the last year. That's definitely a respectable growth rate. Meanwhile, the share price tanked 63%, suggesting the market had much higher expectations. 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.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. If you are thinking of buying or selling BTRS Holdings stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
Given that the market gained 7.0% in the last year, BTRS Holdings shareholders might be miffed that they lost 63%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline has continued throughout the most recent three months, down 26%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand BTRS Holdings better, we need to consider many other factors. For example, we've discovered 3 warning signs for BTRS Holdings that you should be aware of before investing here.
There are plenty of other companies that have insiders buying up shares. You probably do 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.
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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.
