Millennial Media (MM) Is Today's Pre-Market Mover With Heavy Volume Stock

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 Millennial Media ( MM) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Millennial Media as such a stock due to the following factors:

  • MM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
  • MM traded 213,901 shares today in the pre-market hours as of 8:47 AM, representing 18.2% of its average daily volume.

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More details on MM:

Millennial Media, Inc. provides mobile advertising solutions for advertisers and developers in the United States and internationally. Currently there is 1 analyst that rates Millennial Media a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Millennial Media has been 1.5 million shares per day over the past 30 days. Millennial Media has a market cap of $787.0 million and is part of the services sector and media industry. The stock has a beta of 0.50 and a short float of 36.5% with 9.46 days to cover. Shares are down 1% year-to-date as of the close of trading on Thursday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Millennial Media as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, 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 Internet Software & Services industry. The net income has significantly decreased by 159.9% when compared to the same quarter one year ago, falling from -$1.77 million to -$4.60 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, MILLENNIAL MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.27 million or 272.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 39.97%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier 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.
  • MILLENNIAL MEDIA INC 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MILLENNIAL MEDIA INC reported poor results of -$0.07 versus $0.00 in the prior year. This year, the market expects an improvement in earnings (-$0.04 versus -$0.07).

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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