In This Article:
Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Grindr Inc. (NYSE:GRND) have suffered share price declines over the last year. The share price is down a hefty 54% in that time. We wouldn't rush to judgement on Grindr because we don't have a long term history to look at. The share price has dropped 55% in three months. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
If the past week is anything to go by, investor sentiment for Grindr isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for Grindr
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.
During the last year Grindr saw its earnings per share increase strongly. The rate of growth may not be sustainable, but it is still really positive. So we are surprised the share price is down. So it's worth taking a look at some other metrics.
Grindr managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. It might be well worthwhile taking a look at our free report on Grindr's earnings, revenue and cash flow.
A Different Perspective
We doubt Grindr shareholders are happy with the loss of 54% over twelve months. That falls short of the market, which lost 22%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's worth noting that the last three months did the real damage, with a 55% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. 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 instance, we've identified 2 warning signs for Grindr that you should be aware of.