Yahoo Finance How Much Did Avis Budget Group's(NASDAQ:CAR) Shareholders Earn From Share Price Movements Over The Last Three Years?
While not a mind-blowing move, it is good to see that the Avis Budget Group, Inc. (NASDAQ:CAR) share price has gained 22% in the last three months. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 21% in the last three years, falling well short of the market return.
See our latest analysis for Avis Budget Group
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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Avis Budget Group saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But it's safe to say we'd generally expect the share price to be lower as a result!
The graphic below depicts how EPS has changed over time (unveil 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. Dive deeper into the earnings by checking this interactive graph of Avis Budget Group's earnings, revenue and cash flow.
A Different Perspective
Avis Budget Group provided a TSR of 7.8% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 3% over half a decade It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand Avis Budget Group better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Avis Budget Group (including 1 which is potentially serious) .
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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