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

  • ADM has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.42 mentions/day.
  • ADM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $214.2 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 ADM:

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities and products. The company's Oilseeds Processing segment originates, merchandises, crushes, and processes soybeans and soft seeds into vegetable oils and protein meals. The stock currently has a dividend yield of 3.2%. ADM has a PE ratio of 12. Currently there are 2 analysts that rate Archer-Daniels Midland a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Archer-Daniels Midland has been 5.6 million shares per day over the past 30 days. Archer-Daniels Midland has a market cap of $21.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.26 and a short float of 2.2% with 2.05 days to cover. Shares are down 3.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Archer-Daniels Midland as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
  • ADM, with its decline in revenue, underperformed when compared the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 8.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for ARCHER-DANIELS-MIDLAND CO is currently extremely low, coming in at 7.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.52% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to $692.00 million or 79.93% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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