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Even the best stock pickers will make plenty of bad investments. And unfortunately for Matrimony.com Limited (NSE:MATRIMONY) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 53% in that time. Matrimony.com may have better days ahead, of course; we’ve only looked at a one year period. The falls have accelerated recently, with the share price down 20% in the last three months. This could be related to the recent financial results – you can catch up on the most recent data by reading our company report.
View our latest analysis for Matrimony.com
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 way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
Unfortunately Matrimony.com reported an EPS drop of 25% for the last year. This reduction in EPS is not as bad as the 53% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that Matrimony.com has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Matrimony.com shareholders are down 53% for the year (even including dividends), even worse than the market loss of 5.0%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. With the stock down 20% over the last three months, the market doesn’t seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. If you would like to research Matrimony.com in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
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 IN 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.