SSP Group's(LON:SSPG) Share Price Is Down 55% Over The Past Year.

It is a pleasure to report that the SSP Group plc (LON:SSPG) is up 62% in the last quarter. But that's small comfort given the dismal price performance over the last year. During that time the share price has sank like a stone, descending 55%. So the bounce should be viewed in that context. Of course, it could be that the fall was overdone.

View our latest analysis for SSP Group

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. 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.

SSP Group 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. Of course, if the company can turn the situation around, investors will likely profit.

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

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of SSP Group's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 5.7% in the twelve months, SSP Group shareholders did even worse, losing 54%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 4%, 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that SSP Group is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

SSP Group 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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