The Metropolitan Bank Holding (NYSE:MCB) Share Price Has Gained 120%, So Why Not Pay It Some Attention?

By
Simply Wall St
Published
July 24, 2021
NYSE:MCB
Source: Shutterstock

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! Take, for example Metropolitan Bank Holding Corp. (NYSE:MCB). Its share price is already up an impressive 120% in the last twelve months. And in the last week the share price has popped 12%. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. Looking back further, the stock price is 33% higher than it was three years ago.

Check out our latest analysis for Metropolitan Bank Holding

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Metropolitan Bank Holding was able to grow EPS by 47% in the last twelve months. The share price gain of 120% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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
NYSE:MCB Earnings Per Share Growth July 24th 2021

We know that Metropolitan Bank Holding has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

A Different Perspective

We're pleased to report that Metropolitan Bank Holding rewarded shareholders with a total shareholder return of 120% over the last year. That's better than the annualized TSR of 10% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on Metropolitan Bank Holding it might be wise to click here to see if insiders have been buying or selling shares.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

If you’re looking to trade Metropolitan Bank Holding, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.