Would Shareholders Who Purchased Putian Communication Group's (HKG:1720) Stock Year Be Happy With The Share price Today?

It is doubtless a positive to see that the Putian Communication Group Limited (HKG:1720) share price has gained some 33% in the last three months. But that isn't much consolation to those who have suffered through the declines of the last year. Specifically, the stock price slipped by 51% in that time. It's not that amazing to see a bounce after a drop like that. You could argue that the sell-off was too severe.

View our latest analysis for Putian Communication Group

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Unfortunately Putian Communication Group reported an EPS drop of 24% for the last year. The share price decline of 51% is actually more than the EPS drop. This suggests the EPS fall has made some shareholders are more nervous about the business.

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

Dive deeper into Putian Communication Group's key metrics by checking this interactive graph of Putian Communication Group's earnings, revenue and cash flow.

A Different Perspective

Putian Communication Group shareholders are down 51% for the year, but the broader market is up 7.6%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 12% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Putian Communication Group better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Putian Communication Group you should be aware of, and 1 of them is a bit concerning.

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 HK exchanges.

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