Yahoo Finance Can You Imagine How Kadmon Holdings' (NYSE:KDMN) Shareholders Feel About The 58% Share Price Increase?
Kadmon Holdings, Inc. (NYSE:KDMN) shareholders might be concerned after seeing the share price drop 27% in the last month. But over three years, the returns would have left most investors smiling In fact, the company's share price bested the return of its market index in that time, posting a gain of 58%.
Check out our latest analysis for Kadmon Holdings
Kadmon Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Kadmon Holdings actually saw its revenue drop by 66% per year over three years. Despite the lack of revenue growth, the stock has returned 17%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Kadmon Holdings stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
Pleasingly, Kadmon Holdings' total shareholder return last year was 43%. That gain actually surpasses the 17% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Kadmon Holdings on your watchlist. 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. For example, we've discovered 2 warning signs for Kadmon Holdings that you should be aware of before investing here.
Kadmon Holdings 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 US 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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