The Mesa Air Group (NASDAQ:MESA) Share Price Has Gained 111%, So Why Not Pay It Some Attention?
Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Mesa Air Group, Inc. (NASDAQ:MESA) share price has soared 111% in the last year. Most would be very happy with that, especially in just one year! In more good news, the share price has risen 3.1% in thirty days. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. Mesa Air Group hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for Mesa Air Group
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, Mesa Air Group actually saw its earnings per share drop 22%.
This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
Mesa Air Group's revenue actually dropped 30% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Mesa Air Group boasts a total shareholder return of 111% for the last year. And the share price momentum remains respectable, with a gain of 87% 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. 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. For instance, we've identified 4 warning signs for Mesa Air Group that you should be aware of.
Mesa Air Group 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.
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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