Investing in stocks comes with the risk that the share price will fall. And unfortunately for ANI Integrated Services Limited (NSE:AISL) shareholders, the stock is a lot lower today than it was a year ago. The share price has slid 57% in that time. We wouldn't rush to judgement on ANI Integrated Services because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 41% in the last 90 days. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.

View our latest analysis for ANI Integrated Services

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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unfortunately ANI Integrated Services reported an EPS drop of 20% for the last year. The share price decline of 57% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The less favorable sentiment is reflected in its current P/E ratio of 6.47.

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. This free interactive report on ANI Integrated Services's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

ANI Integrated Services shareholders are down 57% for the year (even including dividends), even worse than the market loss of 12%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 41%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.

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.

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