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Mechanical Technology, Incorporated (NASDAQ:MKTY) shareholders might be concerned after seeing the share price drop 29% in the last quarter. But that isn’t a problem when you consider how the share price has soared over the last year. Few could complain about the impressive 960% rise, throughout the period. So we wouldn’t blame sellers for taking some profits. Only time will tell if there is still too much optimism currently reflected in the share price.

It really delights us to see such great share price performance for investors.

View our latest analysis for Mechanical Technology

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 the last year Mechanical Technology saw its earnings per share (EPS) increase strongly. We don’t think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. So we’d expect to see the share price higher. We’re real advocates of letting inflection points like this guide our research as stock pickers.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth

It’s probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Mechanical Technology’s earnings, revenue and cash flow.

A Different Perspective

It’s good to see that Mechanical Technology has rewarded shareholders with a total shareholder return of 960% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 64% per year), it would seem that the stock’s performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It’s always interesting to track share price performance over the longer term. But to understand Mechanical Technology better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we’ve spotted with Mechanical Technology .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

This article by Simply Wall St is general in nature. 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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