Air Transport Services Group’s (NASDAQ:ATSG) 8.9% year-over-year profit increase has outpaced shareholder returns over the past five years

If you buy and hold a stock for many years, you hope to make a profit. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Airline Services Group, Inc. (NASDAQ:ATSG) The stock price is up 44% in the past five years, less than the market’s return. Some buyers scoff, however, with a 30% increase last year.

The past week has been lucrative for investors in Air Transport Services Group, so let’s see if fundamentals have driven the company’s five-year performance.

Check out our latest analysis for Air Transport Services Group

To quote Buffett, “Ships will circumnavigate the globe, but the Flat Earth Society will prosper. There will continue to be wide gaps between price and value in the market…’ An imperfect but simple way to examine how a company’s market perception has changed is to compare the evolution of earnings by action (EPS) with action price movement.

Over the past half-decade, Air Transport Services Group has become profitable. This is widely believed to be a real bright spot, so we would expect to see an increase in the stock price.

You can see how EPS has changed over time in the image below (click on the graph to see the exact values).

NasdaqGS: ATSG Earnings Per Share Growth June 9, 2022

It is good to see that there has been significant insider buying over the past three months. This is a positive point. That said, we believe earnings and revenue growth trends are even more important factors to consider. Before buying or selling a stock, we always recommend a careful review of historical growth trends, available here.

A different perspective

It is good to see that Air Transport Services Group has rewarded its shareholders with a total shareholder return of 30% over the past twelve months. That’s better than the 8% annualized return over half a decade, implying that the company has been doing better recently. Given that the stock price momentum remains strong, it might be worth taking a closer look at the stock lest you miss an opportunity. It is always interesting to follow the evolution of the share price over the long term. But to better understand Air Transport Services Group, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with Air Transport Services Group, and understanding them should be part of your investment process.

Air Transport Services Group isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

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.

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