Unusual Social Activity Today Around EMC (EMC)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified EMC as such a stock due to the following factors:
- EMC has 18x the normal benchmarked social activity for this time of the day compared to its average of 12.65 mentions/day.
- EMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $335.9 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 EMC:
EMC Corporation develops, delivers, and supports information infrastructure and virtual infrastructure technologies, solutions, and services. It operates in three segments: Information Storage, Information Intelligence Group, and RSA Information Security. The stock currently has a dividend yield of 1.6%. EMC has a PE ratio of 21.9. Currently there are 22 analysts that rate EMC a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for EMC has been 14.1 million shares per day over the past 30 days. EMC has a market cap of $57.4 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.44 and a short float of 1.5% with 2.47 days to cover. Shares are down 4.5% year-to-date as of the close of trading on Tuesday.
Analysis:
rates EMC as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- EMC's revenue growth trails the industry average of 30.9%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although EMC's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for EMC CORP/MA is currently very high, coming in at 70.92%. 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 16.25% trails the industry average.
- Net operating cash flow has slightly increased to $2,231.00 million or 1.87% when compared to the same quarter last year. Despite an increase in cash flow, EMC CORP/MA's cash flow growth rate is still lower than the industry average growth rate of 50.63%.
- EMC CORP/MA has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EMC CORP/MA reported lower earnings of $1.31 versus $1.33 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.31).
- You can view the full EMC Ratings Report.
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