Rumble (NASDAQ:RUM) Stock Rated Hold in New Coverage at Lake Street Capital

Key Points

• Lake Street Capital initiated coverage of Rumble with a “Hold” rating and a $25 price target, implying substantial upside from the stock’s $7.38 opening price. MarketBeat’s overall analyst consensus is “Reduce,” based on one Hold and one Sell rating.
• Rumble’s latest quarterly results were mixed: revenue rose 61% year over year to $40.37 million and exceeded estimates, but the company reported an adjusted loss of $0.28 per share, missing the consensus loss estimate of $0.10.
• Rumble shares were down 2.5% in trading, while institutional investors and hedge funds owned 26.15% of the company. The business remains unprofitable, with a negative net margin of 134.6%, though several investors increased or initiated positions.

Equities research analysts at Lake Street Capital started coverage on shares of Rumble (NASDAQ:RUM - Get Free Report) in a report issued on Tuesday, Briefing.com reports. The firm set a "hold" rating and a $25.00 price target on the stock. Lake Street Capital's price objective would suggest a potential upside of 238.75% from the company's current price.

RUM has been the subject of a number of other reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rumble in a report on Friday, July 24th. Wall Street Zen cut shares of Rumble from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Rumble currently has an average rating of "Reduce" and an average price target of $25.00.

Rumble Trading Down 2.5%

RUM stock opened at $7.38 on Tuesday. The business has a fifty day moving average price of $7.89 and a 200 day moving average price of $7.09. Rumble has a fifty-two week low of $4.62 and a fifty-two week high of $10.60. The stock has a market capitalization of $3.66 billion, a price-to-earnings ratio of -12.51 and a beta of 1.25. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.12 and a quick ratio of 2.12.

Rumble (NASDAQ:RUM - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.18). The business had revenue of $40.37 million during the quarter, compared to the consensus estimate of $31.23 million. Rumble had a negative net margin of 134.60% and a negative return on equity of 22.77%. The company's revenue for the quarter was up 61.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.12) EPS. Analysts expect that Rumble will post -0.55 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC acquired a new stake in shares of Rumble during the 2nd quarter worth approximately $69,000. Corient Private Wealth LP bought a new position in Rumble in the second quarter valued at approximately $164,000. Handelsbanken Fonder AB boosted its stake in Rumble by 38.1% in the second quarter. Handelsbanken Fonder AB now owns 39,500 shares of the company's stock valued at $250,000 after acquiring an additional 10,900 shares during the last quarter. Cooper Creek Partners Management LLC grew its holdings in Rumble by 54.1% during the 1st quarter. Cooper Creek Partners Management LLC now owns 5,242,497 shares of the company's stock worth $26,737,000 after acquiring an additional 1,840,893 shares during the period. Finally, State of Wyoming acquired a new stake in Rumble during the 1st quarter worth $62,000. 26.15% of the stock is currently owned by institutional investors and hedge funds.

Rumble Company Profile

Rumble Inc is a video-sharing and social media company that operates the Rumble platform, where users can upload, watch, livestream and share video content. The company also provides related tools for creators, including audience engagement and monetization services, and generates revenue through advertising, subscriptions and other digital offerings.

In addition to its consumer video platform, Rumble offers cloud infrastructure services through Rumble Cloud. These services are designed to support video hosting, storage, distribution and other online applications.

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