Vital Farms Inc (NASDAQ:VITL) shareholders suffered a 36% loss after investing in the stock a year ago
It is a pleasure to report that the Vital Farms, Inc. (NASDAQ: VITL) is up 31% in the last quarter. But that’s minimal compensation for the stock price’s underperformance over the past year. After all, the stock price is down 36% in the past year, significantly underperforming the market.
Now let’s look at the fundamentals of the business and see if the long-term shareholder return matches the performance of the underlying business.
Since Vital Farms has not made a profit in the last twelve months, we will focus on revenue growth to get a quick overview of its business development. Shareholders of unprofitable companies generally expect strong revenue growth. Some companies are willing to defer profitability to increase revenue faster, but in this case, good revenue growth is expected.
Over the last twelve months, Vital Farms has increased its turnover by 33%. We think that’s a nice growth. At the same time, the share price is down 36% year-over-year, which is disappointing given the progress made. This implies that the market expected better growth. However, that is in the past now, and it is the future that matters most.
The graph below illustrates the evolution of income and income over time (reveal the exact values by clicking on the image).
We appreciate the fact that insiders have been buying stocks over the past twelve months. That said, most people consider profit and revenue growth trends to be a more meaningful guide to the business. If you are considering buying or selling Vital Farms stock, you should check out this free report showing analyst earnings forecasts.
A different perspective
Vital Farms shareholders are down 36% for the year, even worse than the 22% market loss. It’s disappointing, but it’s worth bearing in mind that selling market-wide wouldn’t have helped. Putting aside the past twelve months, it’s good to see that the stock price has rebounded 31% in the past ninety days. It could just be a bounce because the selloff was too aggressive, but fingers crossed it’s the start of a new trend. If you want to research this stock further, the insider buying data is an obvious place to start. You can click here to see who bought shares – and the price they paid.
There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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