Yahoo Finance Even though Allscripts Healthcare Solutions (NASDAQ:MDRX) has lost US$130m market cap in last 7 days, shareholders are still up 38% over 3 years
It might be of some concern to shareholders to see the Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) share price down 16% in the last month. But don't let that distract from the very nice return generated over three years. To wit, the share price did better than an index fund, climbing 38% during that period.
In light of the stock dropping 7.6% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive three-year return.
See our latest analysis for Allscripts Healthcare Solutions
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...' 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.
Allscripts Healthcare Solutions became profitable within the last three years. That would generally be considered a positive, so we'd expect the share price to be up.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Allscripts Healthcare Solutions has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
It's good to see that Allscripts Healthcare Solutions has rewarded shareholders with a total shareholder return of 3.5% in the last twelve months. That gain is better than the annual TSR over five years, which is 0.7%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Allscripts Healthcare Solutions better, we need to consider many other factors. Take risks, for example - Allscripts Healthcare Solutions has 2 warning signs we think you should be aware of.
We will like Allscripts Healthcare Solutions 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.
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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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