Unusual Social Activity Today Around Range Resources (RRC)

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

  • RRC has 18x the normal benchmarked social activity for this time of the day compared to its average of 5.74 mentions/day.
  • RRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $155.9 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 RRC:

Range Resources Corporation, an independent natural gas, natural gas liquids (NGLs), and oil company, engages in the acquisition, exploration, and development of natural gas and oil properties in the United States. The stock currently has a dividend yield of 0.3%. RRC has a PE ratio of 16. Currently there are 16 analysts that rate Range Resources a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Range Resources has been 2.9 million shares per day over the past 30 days. Range has a market cap of $9.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.49 and a short float of 12.9% with 6.07 days to cover. Shares are up 9.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Range Resources as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 38.3%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $210.64 million or 16.23% when compared to the same quarter last year. In addition, RANGE RESOURCES CORP has also vastly surpassed the industry average cash flow growth rate of -53.10%.
  • The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.22 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • RANGE RESOURCES CORP's earnings per share declined by 20.0% in the most recent quarter compared to 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, RANGE RESOURCES CORP increased its bottom line by earning $3.78 versus $0.70 in the prior year. For the next year, the market is expecting a contraction of 86.6% in earnings ($0.51 versus $3.78).
  • Looking at the price performance of RRC's shares over the past 12 months, there is not much good news to report: the stock is down 31.48%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. 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.

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