Does Better Collective's (STO:BETCO) Share Price Gain of 18% Match Its Business Performance?

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. To wit, the Better Collective A/S (STO:BETCO) share price is 18% higher than it was a year ago, much better than the market return of around -4.5% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow Better Collective 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 Better Collective

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).

Better Collective was able to grow EPS by 168% in the last twelve months. This EPS growth is significantly higher than the 18% increase in the share price. So it seems like the market has cooled on Better Collective, despite the growth. Interesting.

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 Better Collective's earnings, revenue and cash flow.

A Different Perspective

Better Collective boasts a total shareholder return of 18% for the last year. And the share price momentum remains respectable, with a gain of 6.2% in the last three months. This suggests the company is continuing to win over new investors. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

Better Collective is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.