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 more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.19 mentions/day.
  • SBAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $202.5 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 10 analysts that rate SBA Communications a buy, no analysts rate it a sell, and 3 rate it a hold.

TST Recommends

The average volume for SBA Communications has been 1.3 million shares per day over the past 30 days. SBA has a market cap of $11.9 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.81 and a short float of 2.6% with 1.57 days to cover. Shares are down 10.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SBA Communications as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net income has significantly decreased by 838.1% when compared to the same quarter one year ago, falling from -$16.62 million to -$155.95 million.
  • The share price of SBA COMMUNICATIONS CORP has not done very well: it is down 21.46% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • SBA COMMUNICATIONS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, 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 707.9% in earnings (-$1.54 versus -$0.19).
  • The gross profit margin for SBA COMMUNICATIONS CORP is currently very high, coming in at 72.80%. 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 -37.96% is in-line with the industry average.
  • Net operating cash flow has slightly increased to $159.21 million or 5.89% when compared to the same quarter last year. In addition, SBA COMMUNICATIONS CORP has also vastly surpassed the industry average cash flow growth rate of -44.70%.

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