The nature of investing is that you win some, and you lose some. Anyone who held Sarcos Technology and Robotics Corporation (NASDAQ:STRC) over the last year knows what a loser feels like. In that relatively short period, the share price has plunged 55%. Sarcos Technology and Robotics may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 42% in the last 90 days. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
Since Sarcos Technology and Robotics has shed US$157m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
Given that Sarcos Technology and Robotics 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In just one year Sarcos Technology and Robotics saw its revenue fall by 42%. That's not what investors generally want to see. The share price drop of 55% is understandable given the company doesn't have profits to boast of. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Sarcos Technology and Robotics will earn in the future (free profit forecasts).
A Different Perspective
We doubt Sarcos Technology and Robotics shareholders are happy with the loss of 55% over twelve months. That falls short of the market, which lost 1.1%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 42% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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. To that end, you should be aware of the 1 warning sign we've spotted with Sarcos Technology and Robotics .
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.