Savills'(LON:SVS) Share Price Is Down 11% Over The Past Year.

While not a mind-blowing move, it is good to see that the Savills plc (LON:SVS) share price has gained 11% in the last three months. The stock is actually down over the last year. But it did better than its market, which fell 13%.

See our latest analysis for Savills

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 Savills reported an EPS drop of 7.0% for the last year. The share price decline of 11% is actually more than the EPS drop. So it seems the market was too confident about the business, a year ago.

You can see below how EPS has changed over time (discover 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 Savills' earnings, revenue and cash flow.

A Different Perspective

Although it hurts that Savills returned a loss of 11% in the last twelve months, the broader market was actually worse, returning a loss of 13%. Longer term investors wouldn't be so upset, since they would have made 1.6%, each year, over five years. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. It's always interesting to track share price performance over the longer term. But to understand Savills better, we need to consider many other factors. For example, we've discovered 1 warning sign for Savills that you should be aware of before investing here.

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 GB 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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