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

  • PRGO has 12x the normal benchmarked social activity for this time of the day compared to its average of 1.94 mentions/day.
  • PRGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $299.6 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 PRGO:

Perrigo Company plc, through its subsidiaries, develops, manufactures, and markets over-the-counter (OTC) consumer goods and pharmaceutical products worldwide. The stock currently has a dividend yield of 0.3%. PRGO has a PE ratio of 151. Currently there are 8 analysts that rate Perrigo a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Perrigo has been 2.2 million shares per day over the past 30 days. Perrigo has a market cap of $21.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.66 and a short float of 3.2% with 2.23 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 41.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • PERRIGO CO PLC has improved earnings per share by 6.9% 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, PERRIGO CO PLC reported lower earnings of $0.94 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($7.74 versus $0.94).
  • Net operating cash flow has decreased to $136.00 million or 30.29% 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.
  • PRGO has underperformed the S&P 500 Index, declining 10.63% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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