This week we saw the Strides Pharma Science Limited (NSE:STAR) share price climb by 11%. But over the last three years we've seen a quite serious decline. Indeed, the share price is down a tragic 63% in the last three years. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.

View our latest analysis for Strides Pharma Science

There is no denying that markets are sometimes efficient, but prices do not always reflect 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).

During the three years that the share price fell, Strides Pharma Science's earnings per share (EPS) dropped by 31% each year. This fall in EPS isn't far from the rate of share price decline, which was 28% per year. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Strides Pharma Science's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Strides Pharma Science's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Strides Pharma Science's TSR of was a loss of 63% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

It's good to see that Strides Pharma Science has rewarded shareholders with a total shareholder return of 6.1% in the last twelve months. That's including the dividend. Notably the five-year annualised TSR loss of 5.8% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Strides Pharma Science by clicking this link.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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.