Leaf Mobile (TSE: EAGR shareholders suffer further losses as shares fall 10% this week, pushing year-on-year losses to 56%

Taking the occasional loss is an integral part of investing in the stock market. And there’s no doubt that Mobile Leaf Inc. (TSE:EAGR) The stock has had a very bad year. The stock price fell 56% during this period. We wouldn’t rush to judge Leaf Mobile as we don’t have a long-term track record to review. Moreover, it fell by 48% in about a quarter. It’s not much fun for the holders.

Given that Leaf Mobile lost C$19 million in value in the past 7 days, let’s see if the longer-term decline was driven by the company’s economics.

See our latest review for Leaf Mobile

To paraphrase Benjamin Graham: in the short term, the market is a voting machine, but in the long term, it is a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of ​​how investors’ attitudes toward a company change over time.

Over the past year, Leaf Mobile has seen its earnings per share fall below zero. Some investors have undoubtedly dumped the stock as a result. We hope for the good of the shareholders that the company will soon become profitable again.

The image below shows how EPS has tracked over time (if you click on the image you can see more details).

TSX: EAGR Earnings per share growth April 30, 2022

It is good to see that there has been significant insider buying over the past three months. This is a positive point. On the other hand, we believe revenue and earnings trends are much more meaningful measures of the business. Dive deeper into revenue with this interactive chart of Leaf Mobile’s revenue, revenue, and cash flow.

A different perspective

While Leaf Mobile shareholders are down 56% on the year, the market itself is up 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 48% in the last three months, the market doesn’t seem to believe the company has solved all of its problems. Given the relatively short history of this stock, we would remain fairly cautious until we see strong trading performance. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. Example: we have identified 2 warning signs for Leaf Mobile you should be aware.

Leaf Mobile isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on CA exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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