Stock Analysis

Esquire Financial Holdings (NASDAQ:ESQ) Share Prices Have Dropped 27% In The Last Year

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NasdaqCM:ESQ
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Esquire Financial Holdings, Inc. (NASDAQ:ESQ) shareholders should be happy to see the share price up 14% in the last month. But that is minimal compensation for the share price under-performance over the last year. In fact, the price has declined 27% in a year, falling short of the returns you could get by investing in an index fund.

Check out our latest analysis for Esquire Financial Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Unfortunately Esquire Financial Holdings reported an EPS drop of 4.4% for the last year. The share price decline of 27% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The P/E ratio of 10.79 also points to the negative market sentiment.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth
NasdaqCM:ESQ Earnings Per Share Growth December 6th 2020

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. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

The last twelve months weren't great for Esquire Financial Holdings shares, which cost holders 27%, while the market was up about 25%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 3% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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What are the risks and opportunities for Esquire Financial Holdings?

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers in the United States.

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Rewards

  • Trading at 8.9% below our estimate of its fair value

  • Earnings are forecast to grow 16.22% per year

  • Earnings grew by 59.1% over the past year

Risks

  • Significant insider selling over the past 3 months

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Share Price

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1Y Return

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Esquire Financial Holdings

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About NasdaqCM:ESQ

Esquire Financial Holdings

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers in the United States.

Flawless balance sheet with solid track record.