Further weakness as Artivion (NYSE:AORT) drops 24% this week, taking three-year losses to 48%

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Many investors define successful investing as beating the market average over the long term. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long term Artivion, Inc. (NYSE:AORT) shareholders have had that experience, with the share price dropping 48% in three years, versus a market return of about 41%. And over the last year the share price fell 45%, so we doubt many shareholders are delighted. Unfortunately the share price momentum is still quite negative, with prices down 25% in thirty days. However, we note the price may have been impacted by the broader market, which is down 13% in the same time period.

Given the past week has been tough on shareholders, let’s investigate the fundamentals and see what we can learn.

See our latest analysis for Artivion

Artivion isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, Artivion grew revenue at 3.1% per year. Given it’s losing money in pursuit of growth, we are not really impressed with that. The stock dropped 14% during that time. If revenue growth accelerates, we might see the share price bounce. But the real upside for shareholders will be if the company can start generating profits.

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. This free report showing analyst forecasts should help you form a view on Artivion

A Different Perspective

While the broader market lost about 9.4% in the twelve months, Artivion shareholders did even worse, losing 45%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there’s a good opportunity. Unfortunately, last year’s performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. Even so, be aware that Artivion is showing 2 warning signs in our investment analysis , you should know about…

Artivion 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.

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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.