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Is Alpha and Omega Semiconductor's (NASDAQ:AOSL) Share Price Gain Of 275% Well Earned?

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Simply Wall St
·3 min read
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It might be of some concern to shareholders to see the Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) share price down 11% in the last month. But that doesn't change the fact that the returns over the last year have been very strong. We're very pleased to report the share price shot up 275% in that time. So it is important to view the recent reduction in price through that lense. The real question is whether the business is trending in the right direction.

See our latest analysis for Alpha and Omega Semiconductor

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Alpha and Omega Semiconductor grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 18% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

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

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

We know that Alpha and Omega Semiconductor has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Alpha and Omega Semiconductor stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's good to see that Alpha and Omega Semiconductor has rewarded shareholders with a total shareholder return of 275% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 20% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Alpha and Omega Semiconductor that you should be aware of before investing here.

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.

This article by Simply Wall St is general in nature. 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.

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