Advertisement

Shareholders Are Thrilled That The GetSwift (ASX:GSW) Share Price Increased 223%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the GetSwift Limited (ASX:GSW) share price has soared 223% return in just a single year. In the last week shares have slid back 5.8%. On the other hand, longer term shareholders have had a tougher run, with the stock falling 36% in three years.

See our latest analysis for GetSwift

Given that GetSwift 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 year GetSwift saw its revenue grow by 363%. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 223% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

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

ASX:GSW Earnings and Revenue Growth July 8th 2020
ASX:GSW Earnings and Revenue Growth July 8th 2020

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of GetSwift's earnings, revenue and cash flow.

A Different Perspective

Pleasingly, GetSwift's total shareholder return last year was 223%. That certainly beats the loss of about 14% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 4 warning signs for GetSwift (1 can't be ignored) that you should be aware of.

GetSwift 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.