Mallinckrodt (MNK) Showing Unusual Social Activity Today
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Mallinckrodt as such a stock due to the following factors:
- MNK has 11x the normal benchmarked social activity for this time of the day compared to its average of 13.10 mentions/day.
- MNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $189.1 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 MNK:
Mallinckrodt public limited company develops, manufactures, markets, and distributes specialty pharmaceutical and biopharmaceutical products, and nuclear imaging agents in the United States, Europe, the Middle East, Africa, and internationally. MNK has a PE ratio of 18. Currently there are 11 analysts that rate Mallinckrodt a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Mallinckrodt has been 2.8 million shares per day over the past 30 days. Mallinckrodt has a market cap of $6.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.80 and a short float of 11.5% with 3.77 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Monday.
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Analysis:
rates Mallinckrodt as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 12.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MALLINCKRODT PLC 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MALLINCKRODT PLC turned its bottom line around by earning $2.61 versus -$3.57 in the prior year. This year, the market expects an improvement in earnings ($8.30 versus $2.61).
- The gross profit margin for MALLINCKRODT PLC is currently very high, coming in at 75.42%. 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 12.88% trails the industry average.
- MNK's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 53.06%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The debt-to-equity ratio of 1.26 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, MNK maintains a poor quick ratio of 0.95, which illustrates the inability to avoid short-term cash problems.
- You can view the full Mallinckrodt Ratings Report.
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