While Zhong Ji Longevity Science Group Limited (HKG:767) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 13% in the last quarter. But over the last year the share price has taken off like one of Elon Musk's rockets. In that time, shareholders have had the pleasure of a 833% boost to the share price. So it is not that surprising to see the stock retrace a little. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).
We love happy stories like this one. The company should be really proud of that performance!
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Zhong Ji Longevity Science Group was able to grow EPS by 99% in the last twelve months. We note, however, that extraordinary items have impacted earnings. This EPS growth is significantly lower than the 833% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
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. It might be well worthwhile taking a look at our free report on Zhong Ji Longevity Science Group's earnings, revenue and cash flow.
A Different Perspective
It's nice to see that Zhong Ji Longevity Science Group shareholders have received a total shareholder return of 833% over the last year. That's better than the annualised return of 15% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Zhong Ji Longevity Science Group better, we need to consider many other factors. For instance, we've identified 2 warning signs for Zhong Ji Longevity Science Group (1 is a bit concerning) that you should be aware of.
Zhong Ji Longevity Science 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 HK exchanges.
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