WEBULL

Azenta (NASDAQ:AZTA) adds US$76m to market cap in the past 7 days, though investors from three years ago are still down 57%

Simply Wall St · 07/01 10:43

Azenta, Inc. (NASDAQ:AZTA) shareholders should be happy to see the share price up 15% in the last month. Meanwhile over the last three years the stock has dropped hard. Tragically, the share price declined 57% in that time. So it is really good to see an improvement. While many would remain nervous, there could be further gains if the business can put its best foot forward.

On a more encouraging note the company has added US$76m to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Azenta isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years, Azenta saw its revenue grow by 6.3% per year, compound. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 16% for the last three years. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGS:AZTA Earnings and Revenue Growth July 1st 2025

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. If you are thinking of buying or selling Azenta stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Investors in Azenta had a tough year, with a total loss of 40%, against a market gain of about 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

Azenta 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.