Investors Who Bought Allied Cooperative Insurance Group (TADAWUL:8150) Shares Five Years Ago Are Now Up 279%

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. One great example is Allied Cooperative Insurance Group (TADAWUL:8150) which saw its share price drive 279% higher over five years. Also pleasing for shareholders was the 48% gain in the last three months.

Check out our latest analysis for Allied Cooperative Insurance Group

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

During the last half decade, Allied Cooperative Insurance Group became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

It might be well worthwhile taking a look at our free report on Allied Cooperative Insurance Group's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Allied Cooperative Insurance Group shareholders have received a total shareholder return of 116% over one year. That's better than the annualised return of 31% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Allied Cooperative Insurance Group better, we need to consider many other factors. Even so, be aware that Allied Cooperative Insurance Group is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

We will like Allied Cooperative Insurance Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SA 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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