Did You Miss Infinity Logistics and Transport Ventures' (HKG:1442) 12% Share Price Gain?

On average, over time, stock markets tend to rise higher. This makes investing attractive. But if when you choose to buy stocks, some of them will be below average performers. Unfortunately for shareholders, while the Infinity Logistics and Transport Ventures Limited (HKG:1442) share price is up 12% in the last year, that falls short of the market return. We'll need to follow Infinity Logistics and Transport Ventures for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for Infinity Logistics and Transport Ventures

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 last year, Infinity Logistics and Transport Ventures actually saw its earnings per share drop 8.8%.

Given the share price gain, we doubt the market is measuring progress with EPS. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.

We think that the revenue growth of 5.3% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Infinity Logistics and Transport Ventures' earnings, revenue and cash flow.

A Different Perspective

Infinity Logistics and Transport Ventures shareholders have gained 14% for the year (even including dividends). The bad news is that's no better than the average market return, which was roughly 30%. The last three months haven't been great for shareholder returns, since the share price has trailed the market by 22% in the last three months. But a weak quarter certainly doesn't diminish the longer-term achievements of the business. 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. Case in point: We've spotted 2 warning signs for Infinity Logistics and Transport Ventures you should be aware of, and 1 of them can't be ignored.

Infinity Logistics and Transport Ventures is not the only stock that insiders are buying. 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 Infinity Logistics and Transport Ventures, 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 (at) simplywallst.com.