Those Who Purchased Inspira Financial (CVE:LND) Shares Three Years Ago Have A 62% Loss To Show For It
Investing in stocks inevitably means buying into some companies that perform poorly. But the long term shareholders of Inspira Financial Inc. (CVE:LND) have had an unfortunate run in the last three years. Unfortunately, they have held through a 62% decline in the share price in that time. In contrast, the stock price has popped 8.3% in the last thirty days.
View 3 warning signs we detected for Inspira Financial
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.
Inspira Financial became profitable within the last five years. We would usually expect to see the share price rise as a result. So given the share price is down it's worth checking some other metrics too.
We think that the revenue decline over three years, at a rate of 24% per year, probably had some shareholders looking to sell. And that's not surprising, since it seems unlikely that EPS growth can continue for long in the absence of revenue growth.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Inspira Financial stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Inspira Financial shareholders have gained 24% (in total) over the last year. What is absolutely clear is that is far preferable to the dismal 27% average annual loss suffered over the last three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. Before spending more time on Inspira Financial it might be wise to click here to see if insiders have been buying or selling shares.
We will like Inspira Financial better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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