The Advanced Enzyme Technologies (NSE:ADVENZYMES) Share Price Has Gained 185%, So Why Not Pay It Some Attention?

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Advanced Enzyme Technologies Limited (NSE:ADVENZYMES) share price had more than doubled in just one year - up 185%. We note the stock price is up 1.6% in the last seven days. Also impressive, the stock is up 56% over three years, making long term shareholders happy, too.

View our latest analysis for Advanced Enzyme Technologies

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Advanced Enzyme Technologies grew its earnings per share (EPS) by 12%. The share price gain of 185% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

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

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Advanced Enzyme Technologies' earnings, revenue and cash flow.

A Different Perspective

Pleasingly, Advanced Enzyme Technologies' total shareholder return last year was 186%. And yes, that does include the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 16%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Take risks, for example - Advanced Enzyme Technologies has 1 warning sign we think you should be aware of.

Advanced Enzyme Technologies 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 IN 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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