While shareholders of Positivo Tecnologia (BVMF:POSI3) are in the black over 3 years, those who bought a week ago aren't so fortunate - Simply Wall St

Positivo Tecnologia S.A. (BVMF:POSI3) shareholders might be concerned after seeing the share price drop 27% in the last quarter. But that doesn't undermine the rather lovely longer-term return, if you measure over the last three years. In fact, the share price is up a full 295% compared to three years ago. It's not uncommon to see a share price retrace a bit, after a big gain. The thing to consider is whether the underlying business is doing well enough to support the current price.
While this past week has detracted from the company's three-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.
View our latest analysis for Positivo Tecnologia
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 three years of share price growth, Positivo Tecnologia moved from a loss to profitability. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Positivo Tecnologia has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Positivo Tecnologia's financial health with this free report on its balance sheet.
We've already covered Positivo Tecnologia's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Positivo Tecnologia's TSR of 310% for the 3 years exceeded its share price return, because it has paid dividends.
It's good to see that Positivo Tecnologia has rewarded shareholders with a total shareholder return of 135% in the last twelve months. That gain is better than the annual TSR over five years, which is 21%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Positivo Tecnologia better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Positivo Tecnologia (including 2 which shouldn't be ignored) .
We will like Positivo Tecnologia 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 BR exchanges.
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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