U.S. markets close in 2 hours 4 minutes
  • S&P 500

    3,272.97
    +36.05 (+1.11%)
     
  • Dow 30

    27,045.29
    +282.16 (+1.05%)
     
  • Nasdaq

    10,766.38
    +133.40 (+1.25%)
     
  • Russell 2000

    1,472.07
    +20.61 (+1.42%)
     
  • Crude Oil

    40.27
    +0.34 (+0.85%)
     
  • Gold

    1,879.50
    +11.10 (+0.59%)
     
  • Silver

    23.37
    +0.27 (+1.15%)
     
  • EUR/USD

    1.1686
    +0.0025 (+0.21%)
     
  • 10-Yr Bond

    0.6710
    -0.0050 (-0.74%)
     
  • GBP/USD

    1.2772
    +0.0046 (+0.36%)
     
  • USD/JPY

    105.3850
    +0.0530 (+0.05%)
     
  • BTC-USD

    10,693.52
    +444.05 (+4.33%)
     
  • CMC Crypto 200

    226.47
    +17.53 (+8.39%)
     
  • FTSE 100

    5,822.78
    -76.48 (-1.30%)
     
  • Nikkei 225

    23,087.82
    -258.67 (-1.11%)
     

Investors Who Bought Civista Bancshares (NASDAQ:CIVB) Shares A Year Ago Are Now Down 39%

Simply Wall St

It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. For example, the Civista Bancshares, Inc. (NASDAQ:CIVB) share price is down 39% in the last year. That falls noticeably short of the market decline of around 3.3%. Even if you look out three years, the returns are still disappointing, with the share price down39% in that time. The share price has dropped 41% in three months. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.

Check out our latest analysis for Civista Bancshares

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

During the unfortunate twelve months during which the Civista Bancshares share price fell, it actually saw its earnings per share (EPS) improve by 65%. Of course, the situation might betray previous over-optimism about growth.

The divergence between the EPS and the share price is quite notable, during the year. So it's easy to justify a look at some other metrics.

Civista Bancshares managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

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

NasdaqCM:CIVB Income Statement April 25th 2020
NasdaqCM:CIVB Income Statement April 25th 2020

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. You can see what analysts are predicting for Civista Bancshares in this interactive graph of future profit estimates.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Civista Bancshares's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Civista Bancshares's TSR, which was a 37% drop over the last year, was not as bad as the share price return.

A Different Perspective

We regret to report that Civista Bancshares shareholders are down 37% for the year (even including dividends) . Unfortunately, that's worse than the broader market decline of 3.3%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 5.2% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 4 warning signs for Civista Bancshares you should be aware of, and 1 of them is significant.

Civista Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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.

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.

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. Thank you for reading.