AAC Technologies Holdings (HKG:2018) Share Prices Have Dropped 71% In The Last Three Years

If you love investing in stocks you're bound to buy some losers. But long term AAC Technologies Holdings Inc. (HKG:2018) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 71% in that time. And more recent buyers are having a tough time too, with a drop of 38% in the last year. Shareholders have had an even rougher run lately, with the share price down 10% in the last 90 days.

Check out our latest analysis for AAC Technologies Holdings

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.

During the three years that the share price fell, AAC Technologies Holdings' earnings per share (EPS) dropped by 33% each year. So do you think it's a coincidence that the share price has dropped 34% per year, a very similar rate to the EPS? We don't. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on AAC Technologies Holdings' earnings, revenue and cash flow.

A Different Perspective

Investors in AAC Technologies Holdings had a tough year, with a total loss of 37% (including dividends), against a market gain of about 11%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand AAC Technologies Holdings better, we need to consider many other factors. Take risks, for example - AAC Technologies Holdings has 3 warning signs we think you should be aware of.

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.

If you’re looking to trade AAC Technologies Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.