Trade-Ideas: BlackRock (BLK) Is Today's Unusual Social Activity Stock

Trade-Ideas LLC identified BlackRock (BLK) as an unusual social activity candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

BlackRock

(

BLK

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified BlackRock as such a stock due to the following factors:

  • BLK has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.90 mentions/day.
  • BLK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $232.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on BLK:

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. The stock currently has a dividend yield of 2.6%. BLK has a PE ratio of 19. Currently there are 11 analysts that rate BlackRock a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for BlackRock has been 579,800 shares per day over the past 30 days. BlackRock has a market cap of $58.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.69 and a short float of 1.8% with 2.82 days to cover. Shares are up 5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BlackRock as a

buy

. Among the primary strengths of the company is its expanding profit margins over time. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • 41.73% is the gross profit margin for BLACKROCK INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.03% is above that of the industry average.
  • Despite the weak revenue results, BLK has outperformed against the industry average of 23.7%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • After a year of stock price fluctuations, the net result is that BLK's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Capital Markets industry average, but is less than that of the S&P 500. The net income has decreased by 20.1% when compared to the same quarter one year ago, dropping from $822.00 million to $657.00 million.
  • BLACKROCK INC's earnings per share declined by 19.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BLACKROCK INC increased its bottom line by earning $19.79 versus $19.26 in the prior year. For the next year, the market is expecting a contraction of 1.2% in earnings ($19.56 versus $19.79).

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