Unusual Social Activity Today Around Charter Communications (CHTR) - TheStreet

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

Charter Communications

(

CHTR

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

  • CHTR has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.06 mentions/day.
  • CHTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $176.1 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 CHTR:

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Currently there are 5 analysts that rate Charter Communications a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Charter Communications has been 923,700 shares per day over the past 30 days. Charter has a market cap of $17.0 billion and is part of the services sector and media industry. The stock has a beta of 0.08 and a short float of 7.4% with 5.06 days to cover. Shares are up 15.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Charter Communications as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • CHTR's revenue growth has slightly outpaced the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 14.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for CHARTER COMMUNICATIONS INC is currently lower than what is desirable, coming in at 34.53%. Regardless of CHTR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CHTR's net profit margin of -1.99% significantly underperformed when compared to the industry average.
  • The debt-to-equity ratio is very high at 117.81 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.16, which clearly demonstrates the inability to cover short-term cash needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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