Impro Precision Industries (HKG:1286) Share Prices Have Dropped 22% In The Last Year

Investors can approximate the average market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Impro Precision Industries Limited (HKG:1286) share price slid 22% over twelve months. That's well below the market return of 4.6%. Impro Precision Industries hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The good news is that the stock is up 6.0% in the last week.

Check out our latest analysis for Impro Precision Industries

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.

During the unfortunate twelve months during which the Impro Precision Industries share price fell, it actually saw its earnings per share (EPS) improve by 17%. It could be that the share price was previously over-hyped.

It's surprising to see the share price fall so much, despite the improved EPS. But we might find some different metrics explain the share price movements better.

Revenue was pretty flat on last year, which isn't too bad. But the share price might be lower because the market expected a meaningful improvement, and got none.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

While Impro Precision Industries shareholders are down 21% for the year (even including dividends) , the market itself is up 4.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 13% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. 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. For example, we've discovered 2 warning signs for Impro Precision Industries (1 is potentially serious!) that you should be aware of before investing here.

Impro Precision Industries 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 HK 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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