Investors three-year losses grow to 30% as the stock sheds US$81m this past week – Simply Wall St

While it may not be enough for some shareholders, we think it is good to see the Par Pacific Holdings, Inc. (NYSE:PARR) share price up 14% in a single quarter. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 30% in the last three years, significantly under-performing the market.

After losing 8.2% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Par Pacific Holdings

Par Pacific Holdings 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last three years, Par Pacific Holdings' revenue dropped 2.9% per year. That is not a good result. The stock has disappointed holders over the last three years, falling 9%, annualized. And with no profits, and weak revenue, are you surprised? However, in this kind of situation you can sometimes find opportunity, where sentiment is negative but the company is actually making good progress.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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. You can see what analysts are predicting for Par Pacific Holdings in this interactive graph of future profit estimates.

While it's never nice to take a loss, Par Pacific Holdings shareholders can take comfort that their trailing twelve month loss of 4.3% wasn't as bad as the market loss of around 17%. Given the total loss of 3% per year over five years, it seems returns have deteriorated in the last twelve months. While some investors do well specializing in buying companies that are struggling (but nonetheless undervalued), don't forget that Buffett said that 'turnarounds seldom turn'. It's always interesting to track share price performance over the longer term. But to understand Par Pacific Holdings better, we need to consider many other factors. For instance, we've identified 2 warning signs for Par Pacific Holdings that you should be aware of.

Par Pacific 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.

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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.

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Investors three-year losses grow to 30% as the stock sheds US$81m this past week - Simply Wall St