HIVE Blockchain Technologies’ (CVE:HIVE) investors will be pleased with their massive 400% return over the past three years
It hasn’t been the best quarter for HIVE Blockchain Technologies Ltd. (CVE:HIVE) shareholders, as the stock price has fallen 22% in that time. But for the past three years, the stock has shone like a diamond. The long-term view shows that the share price rose 400% in that period. So this past fall doesn’t do much to dampen our respect for the business. The only way to form an opinion on whether the current price is justified is to consider the merits of the business itself.
With that in mind, it’s worth looking at whether the company’s underlying fundamentals have been the driver of long-term performance, or whether there are any anomalies.
See our latest analysis for HIVE Blockchain Technologies
Given that HIVE Blockchain Technologies has not made a profit in the last twelve months, we will focus on revenue growth to form a quick overview of business development. When a company is not making money, we generally expect good earnings growth. That’s because rapid revenue growth can easily be extrapolated to predict profits, often of significant size.
Over the last 3 years, HIVE Blockchain Technologies saw its revenue grow by 79% per year. That is much better than most loss-making companies. And it’s not just incomes that are falling. The share price rose 71% per year during that time. It’s always tempting to take profits after a stock price rally like that, but high-growth companies like HIVE Blockchain Technologies can sometimes maintain strong growth for years. So we’d recommend you take a closer look at this one, or even put it on your watchlist.
The image below shows how revenue and earnings have followed over time (if you click on the image you can see more details).
We like that insiders have bought shares in the last twelve months. Nevertheless, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for HIVE Blockchain Technologies in this interactive graph of future profit projections.
Another perspective
We regret to report that HIVE Blockchain Technologies shareholders are down 80% for the year. Unfortunately, that’s worse than the broader market decline of 5.0%. That said, it is inevitable that some stocks will be oversold in a falling market. The key is to keep an eye on the fundamental developments. Unfortunately, last year’s results may indicate unresolved challenges, given that it was worse than the 13% annual loss over the past half decade. In general, long-term weakness in the stock price can be a bad sign, although contrarian investors may want to examine the stock in hopes of a turnaround. While it is well worth considering the various impacts market conditions can have on share prices, there are other factors that are even more important. For example, we have identified 3 Warning Signs for HIVE Blockchain Technologies which you should be aware of.
HIVE Blockchain Technologies isn’t the only stock insider buying. So take a look at this free list of growing companies with insider buys.
Please note that the market returns provided in this article reflect the market weighted average return for stocks currently traded on CA exchanges.
Do you have feedback on this article? Worried about the content? Contact with us directly. Alternatively, you can email the editors (at) simplywallst.com.
This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
Join a paid user survey
You will receive one $30 Amazon Gift Card for 1 hour of your time while helping us build better investment tools for individual investors like yourself. sign up here
