Unusual Social Activity Today Around Anadarko Petroleum (APC)

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.

Trade-Ideas LLC identified Anadarko Petroleum ( APC) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Anadarko Petroleum as such a stock due to the following factors:

  • APC has 12x the normal benchmarked social activity for this time of the day compared to its average of 8.58 mentions/day.
  • APC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $304.5 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 APC:

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Oil and Gas Exploration and Production; Midstream; and Marketing. The stock currently has a dividend yield of 1.1%. Currently there are 19 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Anadarko Petroleum has been 4.5 million shares per day over the past 30 days. Anadarko has a market cap of $48.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.91 and a short float of 1.6% with 2.64 days to cover. Shares are up 13.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Anadarko Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 48.7% when compared to the same quarter one year prior, rising from -$770.00 million to -$395.00 million.
  • ANADARKO PETROLEUM CORP has improved earnings per share by 49.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANADARKO PETROLEUM CORP swung to a loss, reporting -$3.51 versus $1.57 in the prior year. This year, the market expects an improvement in earnings (-$1.87 versus -$3.51).
  • In its most recent trading session, APC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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