Yahoo Finance Some GeoPark (NYSE:GPRK) Shareholders Have Copped A Big 53% Share Price Drop
GeoPark Limited (NYSE:GPRK) shareholders will doubtless be very grateful to see the share price up 30% in the last month. But that's not enough to compensate for the decline over the last twelve months. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 53% in that time. So the bounce should be viewed in that context. Arguably, the fall was overdone.
See our latest analysis for GeoPark
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Unhappily, GeoPark had to report a 20% decline in EPS over the last year. The share price decline of 53% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The P/E ratio of 8.36 also points to the negative market sentiment.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that GeoPark has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling GeoPark stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While the broader market lost about 5.2% in the twelve months, GeoPark shareholders did even worse, losing 53%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 8.1%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. For example, we've discovered 2 warning signs for GeoPark that you should be aware of before investing here.
We will like GeoPark better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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. Thank you for reading.
