The Air T (NASDAQ:AIRT) Share Price Is Up 78% And Shareholders Are Holding On

The main point of investing for the long term is to make money. Furthermore, you'd generally like to see the share price rise faster than the market But Air T, Inc. (NASDAQ:AIRT) has fallen short of that second goal, with a share price rise of 78% over five years, which is below the market return. Over the last twelve months the stock price has risen a very respectable 15%.

Check out our latest analysis for Air T

Because Air T made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

For the last half decade, Air T can boast revenue growth at a rate of 12% per year. That's a fairly respectable growth rate. While the share price has gained 12% per year for five years, that's hardly amazing considering the market also rose. Arguably, that means, the market (previously) expected stronger growth from the company.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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. This free interactive report on Air T's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Air T shareholders gained a total return of 15% during the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 12% over half a decade It is possible that returns will improve along with the business fundamentals. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 4 warning signs for Air T you should be aware of, and 2 of them don't sit too well with us.

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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