Unusual Social Activity Around International Business Machines (IBM) Today

Trade-Ideas LLC identified International Business Machines (IBM) as an unusual social activity candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

International Business Machines

(

IBM

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

  • IBM has 10x the normal benchmarked social activity for this time of the day compared to its average of 27.58 mentions/day.
  • IBM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $564.2 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 IBM:

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company's Global Technology Services segment provides IT infrastructure services, such as IT outsourcing, integrated technology, cloud, and technology support services. The stock currently has a dividend yield of 3.5%. IBM has a PE ratio of 12. Currently there are 7 analysts that rate International Business Machines a buy, 3 analysts rate it a sell, and 8 rate it a hold.

The average volume for International Business Machines has been 3.8 million shares per day over the past 30 days. International Business Machines has a market cap of $153.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.78 and a short float of 2.1% with 5.73 days to cover. Shares are up 16.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates International Business Machines as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 56.37% to $5,645.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 31.57%.
  • The gross profit margin for INTL BUSINESS MACHINES CORP is rather high; currently it is at 52.71%. Regardless of IBM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.77% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.8%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the IT Services industry and the overall market, INTL BUSINESS MACHINES CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 3.05 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, IBM's quick ratio is somewhat strong at 1.20, demonstrating the ability to handle short-term liquidity needs.

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