Even after rising 26% this past week, REGENXBIO (NASDAQ:RGNX) shareholders are still down 48% over the past three years

·2 min read

This month, we saw the REGENXBIO Inc. (NASDAQ:RGNX) up an impressive 31%. But that cannot eclipse the less-than-impressive returns over the last three years. In fact, the share price is down 48% in the last three years, falling well short of the market return.

While the stock has risen 26% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

Check out our latest analysis for REGENXBIO

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

REGENXBIO became profitable within the last five years. We would usually expect to see the share price rise as a result. So it's worth looking at other metrics to try to understand the share price move.

We note that, in three years, revenue has actually grown at a 74% annual rate, so that doesn't seem to be a reason to sell shares. It's probably worth investigating REGENXBIO further; while we may be missing something on this analysis, there might also be an opportunity.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

We know that REGENXBIO has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for REGENXBIO in this interactive graph of future profit estimates.

A Different Perspective

While the broader market lost about 17% in the twelve months, REGENXBIO shareholders did even worse, losing 35%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 6%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand REGENXBIO better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for REGENXBIO you should be aware of, and 1 of them shouldn't be ignored.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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

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.