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Anika Therapeutics, Inc. (NASDAQ:ANIK) shareholders might be concerned after seeing the share price drop 29% in the last quarter. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 29%.
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Anika Therapeutics was able to grow EPS by 49% in the last twelve months. This EPS growth is significantly higher than the 29% increase in the share price. Therefore, it seems the market isn't as excited about Anika Therapeutics as it was before. This could be an opportunity.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Anika Therapeutics's earnings, revenue and cash flow.
A Different Perspective
It's good to see that Anika Therapeutics has rewarded shareholders with a total shareholder return of 29% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 1.4% per year over five years. 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 Anika Therapeutics better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Anika Therapeutics you should know about.
We will like Anika Therapeutics better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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