When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Sonida Senior Living, Inc. (NYSE:SNDA) share price has soared 146% in the last 1 year. Most would be very happy with that, especially in just one year! On the other hand, we note it's down 8.8% in about a month. We note that the broader market is down 3.5% in the last month, and this may have impacted Sonida Senior Living's share price. On the other hand, longer term shareholders have had a tougher run, with the stock falling 16% in three years.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

View our latest analysis for Sonida Senior Living

Given that Sonida Senior Living didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Sonida Senior Living's revenue grew by 11%. That's not great considering the company is losing money. In contrast, the share price took off during the year, gaining 146%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.

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

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. If you are thinking of buying or selling Sonida Senior Living stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We're pleased to report that Sonida Senior Living shareholders have received a total shareholder return of 146% over one year. That certainly beats the loss of about 9% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Sonida Senior Living better, we need to consider many other factors. For instance, we've identified 2 warning signs for Sonida Senior Living that you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap 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 American 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.