Shareholders Are Raving About How The Rent.com.au (ASX:RNT) Share Price Increased 385%

It certainly might concern Rent.com.au Limited (ASX:RNT) shareholders to see the share price down 35% in just 30 days. But that isn't a problem when you consider how the share price has soared over the last year. Few could complain about the impressive 385% rise, throughout the period. So we wouldn't blame sellers for taking some profits. Only time will tell if there is still too much optimism currently reflected in the share price.

View our latest analysis for Rent.com.au

Because Rent.com.au 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Rent.com.au saw its revenue grow by 19%. We respect that sort of growth, no doubt. But the market is even more excited about it, with the price apparently bound for the moon, up 385% in one of earth's orbits. We're always cautious when the share price is up so much, but there's certainly enough revenue growth to justify taking a closer look at Rent.com.au.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Rent.com.au stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We're pleased to report that Rent.com.au shareholders have received a total shareholder return of 385% over one year. Notably the five-year annualised TSR loss of 0.2% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Rent.com.au better, we need to consider many other factors. Even so, be aware that Rent.com.au is showing 5 warning signs in our investment analysis , you should know about...

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 AU 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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