Metropolitan Bank Holding's (NYSE:MCB) earnings have declined over year, contributing to shareholders 46% loss
Metropolitan Bank Holding Corp. (NYSE:MCB) shareholders should be happy to see the share price up 12% in the last week. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 46% in one year, under-performing the market.
The recent uptick of 12% could be a positive sign of things to come, so let's take a look at historical fundamentals.
View our latest analysis for Metropolitan Bank Holding
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.
Unfortunately Metropolitan Bank Holding reported an EPS drop of 37% for the last year. We note that the 46% share price drop is very close to the EPS drop. Therefore one could posit that the market has not become more concerned about the company, despite the lower EPS. Instead, the change in the share price seems to reduction in earnings per share, alone.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Metropolitan Bank Holding's earnings, revenue and cash flow.
A Different Perspective
While the broader market gained around 15% in the last year, Metropolitan Bank Holding shareholders lost 46%. 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 1.2% 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. For example, we've discovered 1 warning sign for Metropolitan Bank Holding that you should be aware of before investing here.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are 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.
