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Shareholders in OPKO Health (NASDAQ:OPK) have lost 51%, as stock drops 6.5% this past week

Simply Wall St · 06/18 10:03

Statistically speaking, long term investing is a profitable endeavour. But no-one is immune from buying too high. For example, after five long years the OPKO Health, Inc. (NASDAQ:OPK) share price is a whole 51% lower. That is extremely sub-optimal, to say the least. Shareholders have had an even rougher run lately, with the share price down 31% in the last 90 days.

If the past week is anything to go by, investor sentiment for OPKO Health isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

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OPKO Health wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over half a decade OPKO Health reduced its trailing twelve month revenue by 15% for each year. That puts it in an unattractive cohort, to put it mildly. Arguably, the market has responded appropriately to this business performance by sending the share price down 9% (annualized) in the same time period. We don't generally like to own companies that lose money and don't grow revenues. You might be better off spending your money on a leisure activity. You'd want to research this company pretty thoroughly before buying, it looks a bit too risky for us.

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
NasdaqGS:OPK Earnings and Revenue Growth June 18th 2025

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think OPKO Health will earn in the future (free profit forecasts).

Portfolio Valuation calculation on simply wall st

A Different Perspective

OPKO Health shareholders gained a total return of 2.4% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 9% endured over half a decade. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for OPKO Health you should know about.

OPKO Health is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.

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