Rumble (NASDAQ:RUM) Stock Rating Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Rumble from “hold” to “strong sell,” while the broader analyst consensus is “sell” with a $25 price target.
• Rumble shares opened at $6.71, below their 50-day moving average of $8.03, and have traded between $4.62 and $10.60 over the past year.
• The company exceeded quarterly revenue estimates, reporting $40.37 million in revenue, but missed on earnings with a loss of $0.28 per share versus the expected $0.10 loss; revenue increased 61% year over year.

Rumble (NASDAQ:RUM - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday, Zacks reports.

A number of other equities analysts have also commented on the stock. Lake Street Capital started coverage on shares of Rumble in a report on Tuesday, October 6th. They issued a "hold" rating and a $25.00 price objective on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Rumble in a research note on Friday, July 24th. Finally, Wall Street Zen lowered 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 two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Sell" and a consensus price target of $25.00.

Rumble Stock Performance

Shares of NASDAQ:RUM opened at $6.71 on Monday. The company has a 50 day moving average of $8.03 and a two-hundred day moving average of $7.17. Rumble has a 52-week low of $4.62 and a 52-week high of $10.60. The company has a quick ratio of 2.12, a current ratio of 2.12 and a debt-to-equity ratio of 0.25.

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

Institutional Trading of Rumble

Institutional investors have recently added to or reduced their stakes in the stock. Cooper Creek Partners Management LLC increased its position in shares of Rumble by 54.1% in the 1st quarter. Cooper Creek Partners Management LLC now owns 5,242,497 shares of the company's stock worth $26,737,000 after purchasing an additional 1,840,893 shares during the last quarter. Bank of New York Mellon Corp lifted its position in shares of Rumble by 0.5% during the first quarter. Bank of New York Mellon Corp now owns 322,245 shares of the company's stock worth $1,643,000 after purchasing an additional 1,475 shares during the last quarter. Sigma Planning Corp grew its stake in Rumble by 2.1% in the first quarter. Sigma Planning Corp now owns 162,699 shares of the company's stock worth $830,000 after purchasing an additional 3,349 shares in the last quarter. Handelsbanken Fonder AB grew its stake in Rumble by 38.1% in the second quarter. Handelsbanken Fonder AB now owns 39,500 shares of the company's stock worth $250,000 after purchasing an additional 10,900 shares in the last quarter. Finally, Corient Private Wealth LP acquired a new position in Rumble in the second quarter worth about $164,000. 26.15% of the stock is owned by institutional investors and hedge funds.

About Rumble

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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