Yahoo Finance The MaxCyte (LON:MXCT) Share Price Is Down 49% So Some Shareholders Are Getting Worried
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors in MaxCyte, Inc. (LON:MXCT) have tasted that bitter downside in the last year, as the share price dropped 49%. That contrasts poorly with the market return of -1.7%. Longer term investors have fared much better, since the share price is up 44% in three years. Shareholders have had an even rougher run lately, with the share price down 24% in the last 90 days.
Check out our latest analysis for MaxCyte
Given that MaxCyte didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last twelve months, MaxCyte increased its revenue by 19%. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 49%. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on MaxCyte's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
The last twelve months weren't great for MaxCyte shares, which performed worse than the market, costing holders 49%. The market shed around 1.7%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 13% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
We will like MaxCyte better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.
