Arbor Realty Trust (NYSE:ABR) Has Gifted Shareholders With A Fantastic 185% Total Return On Their Investment

NYSE:ABR) share price is 77% higher than it was five years ago, which is more than the market average. In comparison, the share price is down 10% in a year.” data-reactid=”28″>Passive investing in index funds can generate returns that roughly match the overall market. But in our experience, buying the right stocks can give your wealth a significant boost. For example, the Arbor Realty Trust, Inc. (NYSE:ABR) share price is 77% higher than it was five years ago, which is more than the market average. In comparison, the share price is down 10% in a year.

See our latest analysis for Arbor Realty Trust ” data-reactid=”29″> See our latest analysis for Arbor Realty Trust

To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ 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.

Arbor Realty Trust’s earnings per share are down 22% per year, despite strong share price performance over five years.

Essentially, it doesn’t seem likely that investors are focused on EPS. Since the change in EPS doesn’t seem to correlate with the change in share price, it’s worth taking a look at other metrics.

In fact, the dividend has increased over time, which is a positive. It could be that the company is reaching maturity and dividend investors are buying for the yield. We’d posit that the revenue growth over the last five years, of 28% per year, would encourage people to invest.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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report showing consensus forecasts” data-reactid=”51″>We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

What About Dividends?

A Different Perspective

6 warning signs for Arbor Realty Trust (2 don’t sit too well with us!) that you should be aware of before investing here.” data-reactid=”55″>Investors in Arbor Realty Trust had a tough year, with a total loss of 0.7% (including dividends), against a market gain of about 17%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 23% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we’ve discovered 6 warning signs for Arbor Realty Trust (2 don’t sit too well with us!) that you should be aware of before investing here.