Trade-Ideas LLC identified

Western Digital

(

WDC

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

  • WDC has 14x the normal benchmarked social activity for this time of the day compared to its average of 5.81 mentions/day.
  • WDC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $317.3 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 WDC:

Western Digital Corporation, together with its subsidiaries, engages in the development, manufacture, sale, and provision of data storage solutions that enable consumers, businesses, governments, and other organizations to create, manage, experience, and preserve digital content worldwide. The stock currently has a dividend yield of 4.6%. WDC has a PE ratio of 8. Currently there are 17 analysts that rate Western Digital a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Western Digital has been 3.8 million shares per day over the past 30 days. Western Digital has a market cap of $10.1 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 0.99 and a short float of 5.1% with 2.02 days to cover. Shares are down 23.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Western Digital as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • WDC's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WDC has a quick ratio of 2.18, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 25.3%. Since the same quarter one year prior, revenues fell by 14.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for WESTERN DIGITAL CORP is currently lower than what is desirable, coming in at 34.94%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.42% significantly trails the industry average.
  • Net operating cash flow has decreased to $545.00 million or 34.09% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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