Anant Raj's (NSE:ANANTRAJ) Shareholders Are Down 67% On Their Shares

If you love investing in stocks you're bound to buy some losers. Long term Anant Raj Limited (NSE:ANANTRAJ) shareholders know that all too well, since the share price is down considerably over three years. So they might be feeling emotional about the 67% share price collapse, in that time. And over the last year the share price fell 36%, so we doubt many shareholders are delighted. Even worse, it's down 33% in about a month, which isn't fun at all.

Check out our latest analysis for Anant Raj

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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 three years that the share price fell, Anant Raj's earnings per share (EPS) dropped by 35% each year. This change in EPS is reasonably close to the 31% average annual decrease in the share price. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

The company's earnings per share (over time) is 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. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

Investors in Anant Raj had a tough year, with a total loss of 36% (including dividends), against a market gain of about 3.9%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8% over the last half decade. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Anant Raj is showing 5 warning signs in our investment analysis , and 2 of those are potentially serious...

Anant Raj 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 IN 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.
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