The nature of investing is that you win some, and you lose some. And unfortunately for Steering Holdings Limited (HKG:1826) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 69% in that time. Even if you look out three years, the returns are still disappointing, with the share price down35% in that time. The share price has dropped 79% in three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Unfortunately Steering Holdings reported an EPS drop of 36% for the last year. The share price decline of 69% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. It might be well worthwhile taking a look at our free report on Steering Holdings's earnings, revenue and cash flow.
A Different Perspective
Steering Holdings shareholders are down 69% for the year, falling short of the market return. Meanwhile, the broader market slid about 4.8%, likely weighing on the stock. The three-year loss of 14% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Steering Holdings better, we need to consider many other factors. To that end, you should be aware of the 4 warning signs we've spotted with Steering Holdings .
Steering Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
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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. Thank you for reading.