Latest news with #CSPInc
Yahoo
2 days ago
- Business
- Yahoo
Insiders own 31% of CSP Inc. (NASDAQ:CSPI) shares but retail investors control 42% of the company
The considerable ownership by retail investors in CSP indicates that they collectively have a greater say in management and business strategy A total of 13 investors have a majority stake in the company with 50% ownership Insiders have been buying lately This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To get a sense of who is truly in control of CSP Inc. (NASDAQ:CSPI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 42% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And individual insiders on the other hand have a 31% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Let's take a closer look to see what the different types of shareholders can tell us about CSP. View our latest analysis for CSP Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in CSP. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at CSP's earnings history below. Of course, the future is what really matters. We note that hedge funds don't have a meaningful investment in CSP. Our data shows that Joseph Nerges is the largest shareholder with 14% of shares outstanding. For context, the second largest shareholder holds about 8.1% of the shares outstanding, followed by an ownership of 7.1% by the third-largest shareholder. Victor Dellovo, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer. After doing some more digging, we found that the top 13 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders maintain a significant holding in CSP Inc.. It has a market capitalization of just US$106m, and insiders have US$33m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. The general public, who are usually individual investors, hold a 42% stake in CSP. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. While it is well worth considering the different groups that own a company, there are other factors that are even more important. Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Associated Press
02-06-2025
- Business
- Associated Press
CSPi Added to Russell 3000(R) Index
LOWELL, MA / ACCESS Newswire / June 2, 2025 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today announced that it has been added as a member of the broad-market Russell 3000® Index, effective after the US market opens on June 30, as part of the 2025 Russell indexes reconstitution. 'This is a significant milestone and reflects the excitement and growth potential of our emerging AZT PROTECT business,' commented Victor Dellovo, Chief Executive Officer. 'Being added to the Russell 3000® Index enhances our visibility among institutional investors at a time when we are signing new AZT PROTECT customers and further embedding ourselves with existing customers that have the potential to significantly expand into larger, six and seven figure contracts over the next eighteen months to two years.' The annual reconstitution of the Russell US indexes captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization. Membership in the Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to data as of the end of June 2024, about $10.6 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider. About CSPi CSPi (NASDAQ:CSPI) operates two divisions, each with unique expertise in designing and implementing technology solutions to help customers use technology to success. The High Performance Product division, including ARIA Cybersecurity Solutions, recognizes that better, stronger, more effective cybersecurity starts with a smarter approach. ARIA's solutions provide new ways for organizations to protect their most critical assets - they can shield their critical applications from cyberattack with the AZT solution, while monitoring internal traffic, device-level logs, and alert output with our ARIA ADR solution to substantially improve threat detection and surgically disrupt cyberattacks and data exfiltration. Rounding out the portfolio, Aria's AZT Gateway Software allows us to interrogate network packets at 100mbps line-rate to enforce forwarding and capture policies on the fly. Customers in a range of industries rely on our solutions to accelerate incident response, automate breach detection, and protect their most critical assets and applications - no matter where they are stored, used, or accessed. CSPi's Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and professional services by partnering with best-in-class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24×365 proactive support. Our team of engineers have expertise across major industries supporting five key technology areas: Advanced Security; Communication and Collaboration; Data Center; Networking; and Wireless & Mobility. Safe Harbor The Company wishes to take advantage of the 'Safe Harbor' provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the Act. Such forward-looking statements may include but are not limited to signing new AZT PROTECT customers and further embedding ourselves with existing customers that have the potential to significantly expand into larger, six and seven figure contracts over the next eighteen months to two years. The Company cautions that numerous factors could cause actual results to differ materially from forward-looking statements made by the Company. Such risks include general economic conditions, market factors, competitive factors and pricing pressures, and others described in the Company's filings with the Securities and Exchange Commission ('SEC'). Please refer to the section on forward-looking statements included in the Company's filings with the SEC. CONTACT: CSP Inc. Gary Levine, 978-954-5040 Chief Financial Officer SOURCE: CSP Inc. press release
Yahoo
20-05-2025
- Business
- Yahoo
CSP Posts Q2 Loss as HPP Sales Fall & AZT Pipeline Expands
Shares of CSP Inc. CSPI have declined 6% since the company reported its earnings for the second quarter of fiscal 2025. This compares to the S&P 500 index's 1.4% gain over the same time frame. Over the past month, the stock has risen 2.8% compared with the S&P 500's 15.5% increase. CSP reported revenues of $13.1 million for the quarter ended March 31, 2025, down 4.1% from $13.7 million in the same period a year earlier. The decline was driven by a 74% plunge in sales from the High Performance Products ('HPP') segment, which offset a 12% increase in the Technology Solutions ('TS') segment's revenues. Net loss for the quarter was $108,000, or 1 cent per diluted share, against a net income of $1.6 million, or 16 cents per diluted share, in the prior year quarter, driven largely by a non-recurring high-margin sale in the HPP segment last year. CSP Inc. price-consensus-eps-surprise-chart | CSP Inc. Quote Gross Margin and Segment Performance:Gross profit decreased to $4.2 million from $6.5 million in the prior year. The gross margin narrowed significantly to 32% from 47%. The HPP segment's gross margin fell to 57% from 86%, reflecting the absence of a large ARIA Zero Trust Gateway sale recorded in the prior-year period. The TS segment's gross margin also declined to 31% from 39%, impacted by reduced third-party maintenance revenues and higher product component costs. Operating Income:CSPI posted an operating loss of $994,000 for the second quarter of fiscal 2025 compared to operating income of $1.2 million in the same quarter last year. While SG&A expenses remained relatively flat at $4.4 million, margins were pressured by the sales mix and lower high-margin deals in the HPP segment. Balance Sheet and Capital Allocation:As of March 31, 2025, CSP held $29.5 million in cash and cash equivalents. During the quarter, the company repurchased approximately $384,000 worth of common stock and declared a quarterly dividend of 3 cents per share, reaffirming its ongoing commitment to shareholder returns. CEO Victor Dellovo described the quarter's revenue performance as aligned with internal expectations, noting a modest increase in product sales and a service revenue dip due to the absence of a repeat multi-million-dollar contract from the prior year. Importantly, Dellovo highlighted continued momentum in the ARIA AZT PROTECT line, citing the addition of six new customers and fivefold pipeline growth in recent quarters. A notable agreement was signed in South Africa with a major cell tower operator, which could potentially generate seven-figure revenues over 18 months. CFO Gary Levine attributed the year-over-year gross margin compression to higher component costs and the prior-year presence of a high-margin sale. He also cited a $683,000 tax benefit, largely from vested stock awards and tax credits, which softened the net loss impact. The sharp revenue drop in the HPP segment stemmed primarily from the lack of a repeat of a large ARIA AZT PROTECT order that had significantly boosted last year's results. Gross margins were further affected by elevated component costs. On the TS side, reduced third-party maintenance revenues weighed on margins, although managed and internal services showed modest growth. Foreign exchange losses of $132,000 and a $64,000 drop in interest income also contributed to the net loss, despite stable operating expenses and higher stock-based compensation being largely offset by other cost efficiencies. Management indicated confidence in its AZT PROTECT pipeline and emphasized continued investments in marketing and reseller partnerships. The deal with Rexel USA and a webinar co-hosted with Rockwell Automation generated promising leads expected to materialize in future quarters. Moreover, the company noted an expanding backlog of cloud-based projects, with more than 20 ongoing initiatives compared to 14 at the end of 2024. The company announced a new reseller partnership with Rexel USA, a top Rockwell Automation distributor, which has already initiated deployments of AZT PROTECT at an industrial client's facility. Additionally, a significant new partnership was formed with Oryx Industries in South Africa. The deal marks CSP's first move into cell tower cybersecurity protection and positions the company to potentially expand into similar markets. The targeted customer is one of the largest cell tower providers in South Africa, and the agreement could result in AZT PROTECT being deployed across the customer's entire infrastructure over 18 months. Overall, CSP faced a challenging second quarter but laid the groundwork for potential growth in the second half of fiscal 2025, largely hinging on the success of its AZT PROTECT offerings and managed services expansion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CSP Inc. (CSPI): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Q2 2025 CSP Inc Earnings Call
Michael Polyviou; Investor Relations; CSP Inc Victor Dellovo; President, Chief Executive Officer, Director; CSP Inc Gary Levine; Chief Financial Officer, Treasurer, Secretary; CSP Inc Joseph Nerges; Analyst; Segren Investments Operator Good morning, everyone, and welcome to the CSPi's Fiscal 2025 Second Quarter Results Conference Call. (Operator Instructions). Please note that this conference is being recorded. I will now turn the conference over to your host, Michael Polyviou. Michael Polyviou Thank you, Jenny. Hello, everyone, and thank you for joining us to review CSPi's fiscal 2025 second quarter financial results as well as recent operating developments, the fiscal quarter ended March 31, 2025. Today, with me on the call is Victor Dellovo, CSPi's Chief Executive Officer; and Gary Levine, CSPi's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we'll then open the call for questions. (Event Instructions) Statements made by CSPi's management on today's call regarding the company's business that are not historical facts may be forward-looking statements as terms identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate and continue as well as similar expressions are intended to identify forward-looking statements. Forward-looking statements should not be meant as a guarantee of future performance or results. The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to several uncertainties, risks and other influences, many of which are beyond the company's control that may influence the accuracy of the statements and the projections upon which the segment and statements are based. Factors that may affect the company's results include, but are not limited to, the risks and uncertainties discussed in the risk factors section of the annual report on Form 10-K and the quarterly report on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements are based on information available at the time those statements are made and management's good faith belief as of the time with respect to future events. All forward-looking statements are qualified in entirety by this cautionary statement and CSPi undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date thereof. With that, I'll turn the call over to Victor Dellovo, Chief Executive Officer. Victor, please go ahead. Victor Dellovo Thanks, Michael, and good morning, everyone. Despite an unusual operating environment, our fiscal second quarter revenue was $13.1 million, met our internal budget and expectations. The results reflected a slight increase in product sales and a decline in service revenue as compared to last year's period due to a single multimillion dollar deal that wasn't repeated this quarter. Excluding that deal, we achieved solid double-digit service revenue over the prior year period. However, a 6-figure 12-month customer support contract was signed during the second fiscal quarter relating to the multimillion dollar deal that occurred last year. AZT PROTECT continues to gain traction in the OT marketplace. Through the successful execution of our go-to-market strategy, we signed six new customers during the quarter. Some of these deals were small in nature, but have the potential to follow-on sales, and we believe that some of these could eventually become installations of seven figure values over the upcoming quarters. By focusing on the initial project to implement AZT PROTECT within the organization, improving our solution, we position ourselves for expanding revenue relationships within the corporation. As a result of this approach, our pipeline for AZT continues to expand, and we believe our total opportunities have increased some fivefold over the past couple of quarters. We continue to build relationships with our AZT PROTECT resellers, especially with the largest Rockwell Automation distributor. During the quarter, we entered a new reseller partnership with Rexel USA, an industry leader in supplying industrial equipment throughout the United States. Rexel provides a variety of products to industrial customers across the US and is a premier Rockwell Automation distributor. Rexel continues the unique capabilities of ARIA -- recognizes the unique capabilities of ARIA AZT PROTECT to safeguard its customers against industrial cyber-attacks. It is initially working with ARIA to deploy AZT at the facilities of a large building material manufacturer in need of protection from zero-day malware, ransomware and sophisticated cyber-attacks. At the end of April, we were featured in a Rockwell webinar with just over 100 of its customers signed up, and we are generating new business leads that will be worked with our distributors to come to fruition in the later quarters. We continue to make prudent investments in marketing AZT PROTECT, which includes conference participation and attending regional events held by distributors to build off their existing customer relationships. All told in less than two years of the July 2023 launch, we are where we plan to be at this juncture. And currently, we are always seeking to enhance our sales team as we scale up the business, ensuring we might have the right caliber people selling AZT PROTECT, while building brand recognitions for AZT PROTECT brand in the OT market. I strongly believe, based on the current pipeline, we are gaining traction with key prospects, while endearing ourselves to the current customers to grow the revenue opportunities. We are particularly excited about our new customers signed in April with our distributor Oryx Industries in South Africa. The contract calls for AZT PROTECT to protect small portions of the equipment owned and operated by one of the largest cell tower providers in the country. This agreement enables AZT PROTECT to be broadly deployed across the entire system over the next 18 months. This customer could generate sales in the seven figures for our company over the same period and open up new cell tower protection markets for us. Our team is highly focused on this opportunity as well as several others with similar potential as we enter the second half of the fiscal year. Oryx, which we just partnered towards the end of the quarter, is a leading provider and fieldblazer of cybersecurity solutions in South Africa, and we look forward to working with them to attract other businesses that are in critical need of our services as the country is seeing an increase in cyber-attacks. Other parts of the business did well during the second quarter. The Technology Solution, or TS business, generated $12 million in revenue and continues to be profitable. We are executing contracts with cruise lines and ocean freighter liner market, and we continue to generate increased demand for our cloud-based services for companies wanting to outsource their critical needs to value-tested platform. Earlier this quarter, we were awarded a professional and cloud consumption service project to architect, implement and manage a Microsoft Azure migration for a Florida-based health care provider, which operates clinics across the state. Our mandate is to deliver the next-generation cloud solutions following Microsoft Azure well-architected framework, ensuring seamless support for the clients' enterprise workloads. We finished the quarter with more than $29 million in cash and cash equivalents, while continuing to invest in our AZT product line. We repurchased 384,000 worth of common shares during the quarter, and the Board of Directors authorized another $0.03 per share quarterly cash dividend. In summary, we entered the second half of the fiscal year with some momentum, specifically the South African AZT PROTECT contract and the Technology Solution contract to deliver our critical Microsoft Azure Protect for the Florida-based health care providers. The second half of the fiscal year is off to a promising start. We may face challenging operating conditions, namely price increases on the products that TS purchases for resale as well as customers may reduce spending through reduced headcount in project postponement as they realign their teams. The flexibility of our organization and the prospects for AZT PROTECT growth positions us to maximize our opportunities, and that is our dedicated focus. Now I will ask Gary to provide a brief overview of the fiscal second quarter and 6 months financial performance. Gary? Gary Levine Thanks, Victor. For the second quarter ended March 31, 2024, we reported $13.1 million as compared to $13.7 million for the prior year. Service revenue represented $4.6 million of overall sales compared to $5.2 million of overall sales during the year ago period. Gross profit for the three months ended March 31, 2025, was $4.2 million or 32% of sales compared to gross profit of $6.2 million or 45.3% of sales for the quarter ended March 31, 2025, reflecting higher component costs in the product side of the business, and there was a single multimillion-dollar sales contract at a high margin recognized in the fiscal 2024 second quarter. Our overall operating expenses were essentially flat with the prior period. We had a tax benefit of $683,000 due to excess tax benefit of restricted stock awards that vested in the quarter and tax credits, which we expect to be utilized against our federal and state taxes. We had a loss for the quarter of $108,000 or $0.01 per diluted share for the fiscal second quarter. For the six months, our revenue was $28.5 million versus $29.1 million for the first six months of fiscal 2024. We had a net profit of $341,000 or $0.04 per diluted share of common. The company continues to maintain a robust balance sheet as of March 31, 2025, and had cash and cash equivalents of over $29 million. The higher cash balance relative to our liabilities enhances the company's resource to pay a quarterly cash dividend while executing growth, which includes the continued rollout and market awareness of the AZT product offering. We spent $380,000 during the quarter purchasing 23,800 shares of common. Lastly, as Victor mentioned, the Board of Directors approved a $0.03 cash dividend for shareholders of record on May 28, 2025, payable on June 11, 2025. With that, I will turn it over to the operator for your questions. Operator (Operator Instructions) Joseph Nerges, Segren Investments. Joseph Nerges Thank you. Good morning, guys. Now I got to lead this -- I've got two people I got Brent call -- Brett called me -- Brett Davidson called me. He's got a dental appointment, emergency dental appointment. So I've got to ask questions for Brett, too. Well -- and I think you've covered much of what he wanted to know in your remarks, Victor. He was asking for some more color on the backlog for AZT, and I'm guessing that he was looking for something in the neighborhood of, numbers back on the backlog as well as the potential size of some of these contracts. Do you want to elaborate any more than what you said? Victor Dellovo No, no, no. Like I said, the pipeline is growing. We continue to talk to new customers and the pipeline is -- the total pipeline is in different stages. We cut it out to four different stages, and we have different deals and they're all at different levels of the sales process. So I'd rather just not comment on that. And tell Brett, he can call me if he had any other questions. Joseph Nerges Okay. And the other question he had was on the cruise ship business. And of course, you mentioned that, too, i.e., is it continuing? Do we see more -- and you said not only the cruise ships, but also the freighters, right, you were doing, and so -- and that's increasing or is it pretty steady or? Victor Dellovo Yeah, it's been steady. As we continue to modify the ships, we get another one or another two, it's on their schedule. So we actually never know what's coming. It's just depending when the ships are going to be on land, drydock, as they call it, yes. Joseph Nerges Okay. Well, I'll go to my quick question here. This is on a cell tower contract. And I'm particularly interested in Gary Southwell's comment in the contract. He said other solutions were considered less effective and too complex to operate. I guess my question is, do we have something unique here where we can go -- or is the cell tower thing unique in itself? Is this company unique, where we can go after more cell tower companies that have the same structure, if you want to call it, the same endpoint needs? Victor Dellovo We were unique because the amount of space we take up on the cell tower because they don't -- it's not like they have a huge computer sitting there, right? The amount of space and the amount of CPU power was very attractive to them because like I said, those cell towers there, they have limited CPU and storage on each cell tower. So that was a big, plus we work in Linux where some other companies don't. In some of the versions of the software were a little dated also. So that was one of the perfect customers. I think that's kind of why it might have moved as fast as it did just because we had a lot of check boxes right out of the bat on that particular one. Joseph Nerges So a follow-up there would be, do the other cells -- do we know of other cell companies have limitations on their towers, let's say, storage? Victor Dellovo We're reaching out to those different companies. Some of them are not calling back right at this second, but we will continue to reach out to various companies that we did some research on that is similar to the company in South Africa. Joseph Nerges Okay. And just one other quick thing from -- I'm going back to your letter, the December letter where you talked about the cloud-based projects you had, I guess, at the time, 14 at the end of the year. Is that still -- do we still have a pretty sizable backlog of cloud-based projects at the end -- Victor Dellovo Yeah. It's definitely more than 14. It's probably in the 20s right now. I don't know the exact number. Yeah. Joseph Nerges Okay. Well, I'll drop back and let somebody else ask a question. Thank you, guys. Victor Dellovo Thanks Joe. Operator (Operator Instructions) Okay, I'm not seeing anyone else in the queue for questions, so I will now hand back over to Victor for any closing comments. Victor Dellovo Thank you, Jenny. I want to thank our shareholders for their continued interest and support. We have some momentum heading into the second half of fiscal year due to some recent contracts, and I believe the increased activity we are experiencing is encouraging. With each passing quarter, the AZT PROTECT name is becoming more widely known and the relationship with Rockwell ensures this will continue. Our goal is to go out there with the maximum effort, close deals and once installed, grow the base. We're fortunate to have the TS business that generates the profit to fund the ARIA business, and we look forward to updating you on our next progress during the fiscal third quarter call in August; until then, stay safe. Thank you. Operator Thank you very much. That does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.
Yahoo
24-04-2025
- Business
- Yahoo
Investors in CSP (NASDAQ:CSPI) have seen enviable returns of 372% over the past three years
We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. But when you hold the right stock for the right time period, the rewards can be truly huge. One such superstar is CSP Inc. (NASDAQ:CSPI), which saw its share price soar 360% in three years. And in the last week the share price has popped 4.7%. But this could be related to the buoyant market which is up about 2.3% in a week. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Given that CSP only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue. In the last 3 years CSP saw its revenue grow at 5.2% per year. Considering the company is losing money, we think that rate of revenue growth is uninspiring. Therefore, we're a little surprised to see the share price gain has been so strong, at 66% per year, compound, over three years. A win is a win, even if the revenue growth doesn't really explain it, in our view). The company will need to continue to execute on its business strategy to justify this rise. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Dive deeper into the earnings by checking this interactive graph of CSP's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of CSP, it has a TSR of 372% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! It's good to see that CSP has rewarded shareholders with a total shareholder return of 14% in the last twelve months. That's including the dividend. However, that falls short of the 25% TSR per annum it has made for shareholders, each year, over five years. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. 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. Even so, be aware that CSP is showing 1 warning sign in our investment analysis , you should know about... CSP is not the only stock that insiders are buying. For those who like to find lesser know companies 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 American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
