Yahoo Finance Seagate Technology Holdings (NASDAQ:STX) investors are sitting on a loss of 43% if they invested a year ago
The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. That downside risk was realized by Seagate Technology Holdings plc (NASDAQ:STX) shareholders over the last year, as the share price declined 45%. That falls noticeably short of the market decline of around 17%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 8.3% in three years. The falls have accelerated recently, with the share price down 27% in the last three months.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for Seagate Technology Holdings
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).
Unhappily, Seagate Technology Holdings had to report a 22% decline in EPS over the last year. This reduction in EPS is not as bad as the 45% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business. The P/E ratio of 9.80 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).
Dive deeper into Seagate Technology Holdings' key metrics by checking this interactive graph of Seagate Technology Holdings's earnings, revenue and cash flow.
A Different Perspective
We regret to report that Seagate Technology Holdings shareholders are down 43% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 17%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 12% per year over half a decade. 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. To that end, you should learn about the 2 warning signs we've spotted with Seagate Technology Holdings (including 1 which is a bit unpleasant) .
We will like Seagate Technology Holdings 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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