Yahoo Finance Despite shrinking by AU$18m in the past week, Prospa Group (ASX:PGL) shareholders are still up 12% over 1 year
Prospa Group Limited (ASX:PGL) shareholders might be concerned after seeing the share price drop 11% in the last week. But over the last year the share price action has been satisfactory. Indeed the stock is up 12% over twelve months, compared to a market return of about 11%.
While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.
Check out our latest analysis for Prospa Group
Prospa Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Prospa Group's revenue grew by 88%. That's a head and shoulders above most loss-making companies. While the share price gain of 12% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate Prospa Group in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see below how earnings and revenue have changed over time (discover 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. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. You can see what analysts are predicting for Prospa Group in this interactive graph of future profit estimates.
A Different Perspective
Prospa Group shareholders have gained 12% over twelve months, which isn't far from the market return of 11%. And the stock has been on a nice little run lately, with the price climbing 19% higher in 90 days. It could be that word is spreading about its positive business attributes. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.
Prospa Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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.