Strong week for Hapvida Participações e Investimentos (BVMF:HAPV3) shareholders doesn't alleviate pain of one-year loss

Hapvida Participações e Investimentos S.A. (BVMF:HAPV3) shareholders should be happy to see the share price up 18% in the last week. But that doesn't change the fact that the returns over the last year have been stomach churning. Indeed, the share price is down a whopping 79% in the last year. So it's not that amazing to see a bit of a bounce. Only time will tell if the company can sustain the turnaround.

On a more encouraging note the company has added R$2.8b to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

Check out our latest analysis for Hapvida Participações e Investimentos

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.

Hapvida Participações e Investimentos fell to a loss making position during the year. While this may prove temporary, we'd consider it a negative, so it doesn't surprise us that the stock price is down. We hope for shareholders' sake that the company becomes profitable again soon.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Hapvida Participações e Investimentos' key metrics by checking this interactive graph of Hapvida Participações e Investimentos's earnings, revenue and cash flow.

A Different Perspective

Hapvida Participações e Investimentos shareholders are down 79% for the year, falling short of the market return. Meanwhile, the broader market slid about 17%, likely weighing on the stock. The three-year loss of 19% 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. 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 Hapvida Participações e Investimentos is showing 1 warning sign in our investment analysis , you should know about...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Brazilian 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.