I have built a list of growth companies and craft partners Asset Management (NYSE:APAM)


Some have more money than sense, they say, so even companies with no revenue, no profit and a history of failures can easily find investors. Unfortunately, high-risk investments are often unlikely to ever return, and many investors pay a price to learn their lesson.

Contrary to all that, I prefer to spend time on companies like Craftsman Partners Asset Management (NYSE:APAM), which not only generates revenue, but also profits. Even if stocks are fully valued today, most capitalists would recognize its earnings as a demonstration of consistent value generation. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they don’t always produce something when pressed.

Discover our latest analysis for Artisan Partners Asset Management

How fast is Artisan Partners Asset Management growing?

As one of my mentors once told me, stock price follows earnings per share (EPS). This makes EPS growth an attractive quality for any business. It is certainly pleasing to see that Artisan Partners Asset Management has managed to grow EPS by 19% annually over three years. If the company can sustain this type of growth, we expect shareholders to come out on top.

A careful look at revenue growth and earnings before interest and tax (EBIT) margins can help inform a view on the sustainability of recent earnings growth. Artisan Partners Asset Management has maintained stable EBIT margins over the past year, while growing revenue by 23% to $1.2 billion. It is progress.

The chart below shows how the company’s top and bottom line has grown over time. Click on the table to see the exact numbers.

NYSE: APAM Earnings and Revenue History as of May 1, 2022

Luckily, we have access to analyst forecasts from Artisan Partners Asset Management future profits. You can make your own predictions without looking, or you can take a peek at what the pros are predicting.

Are Artisan Partners’ asset management insiders aligned with all shareholders?

Like standing on the lookout, surveying the horizon at sunrise, insider buying, for some investors, brings joy. Indeed, insider buying often indicates that those closest to the company are confident that the stock price will perform well. However, small purchases don’t always reveal conviction, and insiders don’t always get it right.

We have seen sales over the last twelve months, but that is insignificant compared to the US$10.0 million that independent director Tench Coxe has spent to acquire shares. Note that the average purchase price was approximately US$45.39. The amount of this insider buying is both rare and a sight to behold, much like an endangered Amur leopard in the wild.

In addition to insider buying, it’s good to see that Artisan Partners Asset Management insiders have a valuable investment in the company. Given that insiders own a small fortune of stock, currently valued at $81 million, they have plenty of motivation to push the company to success. This should keep them focused on creating long-term shareholder value.

Does Artisan Partners Asset Management deserve a spot on your watchlist?

For growth investors like me, Artisan Partners Asset Management’s gross earnings growth rate is a beacon in the night. Even better, the insiders own a large part of the company and one of them even bought more shares. So it’s fair to say that I think this title might well deserve a spot on your watch list. However, before you get too excited, we found out 2 warning signs for Artisan Partners Asset Management of which you should be aware.

As a growth investor, I like to see insider buying. But Artisan Partners Asset Management is not alone. You can see a free list of them here.

Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.


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