Goosehead Insurance: 54% Return Over Three Years, But Share Price Falls 21% in Q1

Goosehead Insurance investors have seen a 54% return over the past three years, but the share price has fallen 21% in the last quarter. The company's EPS has grown at 116% per year, but the share price has only increased by 13% annually. Investors have become more cautious about the company, and the market remains optimistic with a P/E ratio of 72.22.

Goosehead Insurance, Inc. (NASDAQ: GSHD) has seen a mixed performance over the past three years, with investors experiencing a 54% return on total shareholder return (TSR) but a 21% drop in share price during the last quarter. The company's earnings per share (EPS) growth rate has been impressive, increasing at an annual rate of 116% over the past three years, which has driven the stock price higher, albeit at a slower pace of 13% annually.

Investors have become more cautious about the company, as evidenced by the divergence between EPS growth and share price increase. Despite the cautious market sentiment, the market remains optimistic, as indicated by the company's high price-to-earnings (P/E) ratio of 72.22. Additionally, insiders have been buying shares, which could be a positive sign for the company's future prospects.

However, it is essential to consider other factors, such as risks and long-term trends. Goosehead Insurance has two warning signs that investors should be aware of, and its TSR has been stable over the past five years, with an annual reduction of 0.5%. While the company's business appears to be stabilizing, further analysis is needed to fully understand its long-term performance.

For more detailed information, please refer to the article by Simply Wall St [1].

References:
[1] https://finance.yahoo.com/news/investors-goosehead-insurance-nasdaq-gshd-111037883.html