Investors Who Bought Alpha Pro Tech (NYSEMKT:APT) Shares Five Years Ago Are Now Up 583%
The last three months have been tough on Alpha Pro Tech, Ltd. (NYSEMKT:APT) shareholders, who have seen the share price decline a rather worrying 30%. But that does not change the realty that the stock's performance has been terrific, over five years. In fact, during that period, the share price climbed 583%. Impressive! So it might be that some shareholders are taking profits after good performance. Of course what matters most is whether the business can improve itself sustainably, thus justifying a higher price.
We love happy stories like this one. The company should be really proud of that performance!
View our latest analysis for Alpha Pro Tech
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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Alpha Pro Tech managed to grow its earnings per share at 53% a year. So the EPS growth rate is rather close to the annualized share price gain of 47% per year. This indicates that investor sentiment towards the company has not changed a great deal. In fact, the share price seems to largely reflect the EPS growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Alpha Pro Tech has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Alpha Pro Tech stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Alpha Pro Tech shareholders have received a total shareholder return of 303% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 47% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Alpha Pro Tech better, we need to consider many other factors. Take risks, for example - Alpha Pro Tech has 2 warning signs we think you should be aware of.
We will like Alpha Pro Tech 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.
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.
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