Stock Analysis

What Type Of Returns Would Argentex Group's(LON:AGFX) Shareholders Have Earned If They Purchased Their SharesYear Ago?

AIM:AGFX
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Argentex Group Plc (LON:AGFX) shareholders should be happy to see the share price up 15% in the last quarter. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 39% in one year, under-performing the market.

Check out our latest analysis for Argentex 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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

A Different Perspective

Argentex Group shareholders are down 38% for the year (even including dividends), even worse than the market loss of 4.4%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's great to see a nice little 15% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Argentex Group , and understanding them should be part of your investment process.

Argentex Group 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 GB 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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