Harpoon Therapeutics (NASDAQ:HARP) Shareholders Have Enjoyed A 15% Share Price Gain

Harpoon Therapeutics, Inc. (NASDAQ:HARP) shareholders might be concerned after seeing the share price drop 13% in the last month. But at least the stock is up over the last year. In that time, it is up 15%, which isn't bad, but is below the market return of 21%.

View our latest analysis for Harpoon Therapeutics

Because Harpoon Therapeutics 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. 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.

Over the last twelve months, Harpoon Therapeutics' revenue grew by 128%. That's well above most other pre-profit companies. Let's face it the 15% share price gain in that time is underwhelming compared to the growth. When revenue spikes but the share price doesn't we can't help wondering if the market is missing something. It could be that the stock was previously over-hyped, or that losses are causing concern for the market, but this could be an opportunity.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth

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. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

Harpoon Therapeutics shareholders have gained 15% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 21%. 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. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Harpoon Therapeutics (of which 1 is a bit concerning!) you should know about.

Harpoon Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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. 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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