Would Shareholders Who Purchased Rhinebeck Bancorp's (NASDAQ:RBKB) Stock Year Be Happy With The Share price Today?

While it may not be enough for some shareholders, we think it is good to see the Rhinebeck Bancorp, Inc. (NASDAQ:RBKB) share price up 20% in a single quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 27% in a year, falling short of the returns you could get by investing in an index fund.

See our latest analysis for Rhinebeck Bancorp

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.

Unhappily, Rhinebeck Bancorp had to report a 2.2% decline in EPS over the last year. This reduction in EPS is not as bad as the 27% share price fall. So it seems the market was too confident about the business, a year ago.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at our free report on Rhinebeck Bancorp's earnings, revenue and cash flow.

A Different Perspective

While Rhinebeck Bancorp shareholders are down 27% for the year, the market itself is up 23%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 20% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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. To that end, you should be aware of the 1 warning sign we've spotted with Rhinebeck Bancorp .

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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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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