The Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) The stock price had a bad week, falling 10%. On the other hand, the share price is higher than it was three years ago. However, many shareholders are unlikely to be thrilled with the 41% gain in share price during this period, given the rising market.
Although the stock has fallen 10% this week, it is worth focusing on the long term and seeing if historical stock returns have been driven by underlying fundamentals.
Check out our latest analysis for Silvercrest Asset Management Group
While markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just underlying trading performance. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of how investors’ attitudes toward a company change over time.
Silvercrest Asset Management Group was able to increase its EPS by 22% per year over three years, driving up the share price. This EPS growth is greater than the average annual share price increase of 12%. So it seems investors have become more cautious about the company over time. This cautious sentiment is reflected in its (rather low) P/E ratio of 9.43.
The company’s earnings per share (over time) is shown in the image below (click to see exact numbers).
We know that Silvercrest Asset Management Group recently improved its results, but will it increase its income? You could check this free report showing analyst revenue forecast.
What about dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price performance. TSR is a calculation of return that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of all discounted capital raisings and spinoffs. It’s fair to say that the TSR gives a more complete picture of stocks that pay a dividend. We note that for Silvercrest Asset Management Group the TSR over the past 3 years was 61%, which is better than the share price return mentioned above. And there’s no price guessing that dividend payouts largely explain the divergence!
A different perspective
It is good to see that Silvercrest Asset Management Group has rewarded its shareholders with a total shareholder return of 22% over the last twelve months. This includes the dividend. As the one-year TSR is better than the five-year TSR (the latter standing at 12% per year), it seems that the stock’s performance has improved lately. At best, this may hint at genuine trading momentum, implying that now could be a great time to dig deeper. While it’s worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. Take risks, for example – Silvercrest Asset Management Group has 1 warning sign we think you should know.
Sure Silvercrest Asset Management Group may not be the best stock to buy. So you might want to see this free collection of growth values.
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.