Update: DIT Group (HKG:726) Stock Gained 42% In The Last Year - Simply Wall St
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the DIT Group Limited (HKG:726) share price is up 42% in the last year, clearly besting the market return of around 27% (not including dividends). So that should have shareholders smiling. Having said that, the longer term returns aren't so impressive, with stock gaining just 7.8% in three years.
See our latest analysis for DIT Group
There is no denying that markets are sometimes efficient, but prices do not always reflect 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.
DIT Group was able to grow EPS by 43% in the last twelve months. This EPS growth is remarkably close to the 42% increase in the share price. So this implies that investor expectations of the company have remained pretty steady. We don't think its coincidental that the share price is growing at a similar rate to the earnings per share.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
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. Dive deeper into the earnings by checking this interactive graph of DIT Group's earnings, revenue and cash flow.
A Different Perspective
It's good to see that DIT Group has rewarded shareholders with a total shareholder return of 42% in the last twelve months. That certainly beats the loss of about 7% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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 2 warning signs for DIT Group you should be aware of.
DIT Group 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 HK exchanges.
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2021-06-04 02:06:37Z
https://simplywall.st/stocks/hk/real-estate/hkg-726/dit-group-shares/news/update-dit-group-hkg726-stock-gained-42-in-the-last-year
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