The UP Global Sourcing Holdings (LON:UPGS) Share Price Is Up 91% And Shareholders Are Holding On
The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the UP Global Sourcing Holdings plc (LON:UPGS) share price is up 91% in the last year, clearly besting than the market return of around 1.9% (not including dividends). So that should have shareholders smiling. We'll need to follow UP Global Sourcing Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
See our latest analysis for UP Global Sourcing Holdings
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.
Over the last twelve months, UP Global Sourcing Holdings actually shrank its EPS by 28%. Given the share price gain, we doubt the market is measuring progress with EPS. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.
We haven't seen UP Global Sourcing Holdings increase dividend payments yet, so the yield probably hasn't helped drive the share higher. It saw it's revenue decline by 20% over twelve months. It's fair to say we're a little surprised to see the share price up, and that makes us cautious.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
We know that UP Global Sourcing Holdings has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for UP Global Sourcing Holdings the TSR over the last year was 104%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
UP Global Sourcing Holdings boasts a total shareholder return of 104% for the last year(that includes the dividends). And the share price momentum remains respectable, with a gain of 25% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
