Does Majesco’s (NASDAQ:MJCO) Share Price Gain of 67% Match Its Business Performance?

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By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. Just take a look at Majesco (NASDAQ:MJCO), which is up 67%, over three years, soundly beating the market return of 42% (not including dividends). On the other hand, the returns haven’t been quite so good recently, with shareholders up just 36%.

Check out our latest analysis for Majesco

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Majesco became profitable within the last three years. So we would expect a higher share price over the period.

NasdaqGM:MJCO Past and Future Earnings, July 4th 2019
NasdaqGM:MJCO Past and Future Earnings, July 4th 2019

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Majesco’s earnings, revenue and cash flow.

A Different Perspective

We’re pleased to report that Majesco rewarded shareholders with a total shareholder return of 36% over the last year. That’s better than the annualized TSR of 19% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares – and the price they paid.

Majesco is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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