Trade-Ideas: SBA Communications (SBAC) Is Today's Unusual Social Activity Stock

Trade-Ideas LLC identified SBA Communications (SBAC) as an unusual social activity candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

SBA Communications

(

SBAC

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

  • SBAC has 15x the normal benchmarked social activity for this time of the day compared to its average of 1.35 mentions/day.
  • SBAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $157.8 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 SBAC:

SBA Communications Corporation owns and operates wireless communications tower structures, rooftops, and other structures that support antennas used for wireless communications in the United States and its territories, Canada, Central America, and Brazil. Currently there are 11 analysts that rate SBA Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for SBA Communications has been 1.1 million shares per day over the past 30 days. SBA has a market cap of $15.0 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.76 and a short float of 2.6% with 2.23 days to cover. Shares are down 0.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SBA Communications as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 398.9% when compared to the same quarter one year prior, rising from -$9.47 million to $28.31 million.
  • The gross profit margin for SBA COMMUNICATIONS CORP is currently very high, coming in at 72.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.89% trails the industry average.
  • SBA COMMUNICATIONS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SBA COMMUNICATIONS CORP continued to lose money by earning -$0.19 versus -$0.45 in the prior year. For the next year, the market is expecting a contraction of 15.8% in earnings (-$0.22 versus -$0.19).

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