Yahoo Finance The past year for HomeTrust Bancshares (NASDAQ:HTBI) investors has not been profitable
While it may not be enough for some shareholders, we think it is good to see the HomeTrust Bancshares, Inc. (NASDAQ:HTBI) share price up 12% in a single quarter. In contrast, the stock is down for the year. But it did better than its market, which fell 14%.
It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.
View our latest analysis for HomeTrust Bancshares
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 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.
Even though the HomeTrust Bancshares share price is down over the year, its EPS actually improved. It could be that the share price was previously over-hyped.
The divergence between the EPS and the share price is quite notable, during the year. So it's well worth checking out some other metrics, too.
Given the yield is quite low, at 1.6%, we doubt the dividend can shed much light on the share price. On the other hand, we're certainly perturbed by the 4.9% decline in HomeTrust Bancshares' revenue. If the market sees the weak revenue as jeopardising EPS, that could explain the lower share price.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think HomeTrust Bancshares will earn in the future (free profit forecasts).
A Different Perspective
The total return of 14% received by HomeTrust Bancshares shareholders over the last year isn't far from the market return of -14%. Longer term investors wouldn't be so upset, since they would have made 0.4%, each year, over five years. If the stock price has been impacted by changing sentiment, rather than deteriorating business conditions, it could spell opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for HomeTrust Bancshares you should be aware of.
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 US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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