Marlowe (LON:MRL) shareholders are up 10% this past week, but still in the red over the last year

Marlowe plc (LON:MRL) shareholders should be happy to see the share price up 10% in the last week. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 43% in the last year, well below the market return.

On a more encouraging note the company has added UK£43m 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.

View our latest analysis for Marlowe

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Marlowe managed to increase earnings per share from a loss to a profit, over the last 12 months.

It's good to see it turn a profit, but we note it was reasonably close to profitability last year. And judging by the share price, the market is not too happy about it, either. Sentiment seems negative, despite the newfound profitability - so contrarians may want to take a look at the stock.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on Marlowe's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Investors in Marlowe had a tough year, with a total loss of 43%, against a market gain of about 8.1%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 5%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Marlowe better, we need to consider many other factors. For instance, we've identified 1 warning sign for Marlowe that you should be aware of.

Marlowe 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 GB 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.