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Collectors Universe (NASDAQ:CLCT) Shareholders Have Enjoyed An Impressive 105% Share Price Gain

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Collectors Universe, Inc. (NASDAQ:CLCT) share price had more than doubled in just one year - up 105%. On top of that, the share price is up 26% in about a quarter. Looking back further, the stock price is 62% higher than it was three years ago.

Check out our latest analysis for Collectors Universe

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. 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.

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Collectors Universe was able to grow EPS by 58% in the last twelve months. This EPS growth is significantly lower than the 105% increase in the share price. This indicates that the market is now more optimistic about the stock.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

NasdaqGM:CLCT Past and Future Earnings, October 31st 2019
NasdaqGM:CLCT Past and Future Earnings, October 31st 2019

Dive deeper into Collectors Universe's key metrics by checking this interactive graph of Collectors Universe's earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Collectors Universe's TSR for the last year was 113%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's good to see that Collectors Universe has rewarded shareholders with a total shareholder return of 113% in the last twelve months. And that does include the dividend. That gain is better than the annual TSR over five years, which is 9.4%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on Collectors Universe it might be wise to click here to see if insiders have been buying or selling shares.

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.

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.

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. Thank you for reading.