Metropolitan Bank Holding (NYSE:MCB) shareholders have endured a 62% loss from investing in the stock a year ago
The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Metropolitan Bank Holding Corp. (NYSE:MCB) have suffered share price declines over the last year. The share price is down a hefty 62% in that time. At least the damage isn't so bad if you look at the last three years, since the stock is down 10% in that time. Furthermore, it's down 49% in about a quarter. That's not much fun for holders.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
View our latest analysis for Metropolitan Bank Holding
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
Unhappily, Metropolitan Bank Holding had to report a 14% decline in EPS over the last year. This reduction in EPS is not as bad as the 62% share price fall. So it seems the market was too confident about the business, a year ago. The P/E ratio of 4.86 also points to the negative market sentiment.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Metropolitan Bank Holding's earnings, revenue and cash flow.
A Different Perspective
While the broader market gained around 1.6% in the last year, Metropolitan Bank Holding shareholders lost 62%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Metropolitan Bank Holding better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Metropolitan Bank Holding (of which 1 shouldn't be ignored!) you should know about.
Metropolitan Bank Holding 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 American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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