Altria Group Inc (MO)

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Altria Stock (MO) Dark Pool Analysis
By: TheStreet | April 16, 2021

With the launch of SpotGamma’s new Dark Pool dashboard, we wanted to share an analysis of Altria Stock (ticker: MO) a stock we selected at random.

In the chart below we’ve plotted a few things:

• Stocks Closing Price: Blue line.
• The 5 Day Dark Pool Indication (DPI): Orange line. We use a 5 day average to show consistent buying in Dark Pools
• Total Dark Pool Volume/Total Stock Volume: Grey line. By viewing the percentage of total volume taking place in dark pools we can eliminate DPI signals that take place on little DP volume.

Statistics show that when the DPI is >45% the forward returns in equities are more positive than average returns.

In the graph of MO below we highlighted in green periods for which the 5 day average DPI >45%, and Dark Pool volume is >10% of total volume. In theory these are times in which large entities like hedge funds are accumulating shares of the stock.



The returns for MO since January 2018 are as in the table below. You can see that there is a significantly higher return following periods with a 45 DPI. Additionally when the 5 day average DPI is below 30, the stock underperforms by a wide margin.

                 5 Day Avg Return	20 Day Average Return 
 All days	           -0.2%	                -0.8% 
 5 day average DPI >45	    0.4%	                 1.5% 
 5 day average DPI <30	   -0.6%	                -1.8%

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