Investors Purchase Large Volume of Rumble Call Options (NASDAQ:RUM)

Key Points

• Investors bought a surge of 50,879 call options on Rumble, an increase of about 1,121% versus the average daily call volume, signaling unusually heavy bullish options activity.
• Shares jumped roughly 12.6% to $6.29 on heavy trading (8.9M shares vs a ~2.04M average), and major shareholder Tether Global Investments purchased 44,355 shares, with insiders owning about 45.10% of the company.
• Rumble missed quarterly EPS expectations (reported ($0.13) vs ($0.11) expected), remains unprofitable with negative margins and revenue slightly below estimates, and carries an average analyst rating of Sell.

Rumble Inc. (NASDAQ:RUM - Get Free Report) was the target of some unusual options trading on Thursday. Investors purchased 50,879 call options on the stock. This is an increase of approximately 1,121% compared to the average volume of 4,166 call options.

Insider Transactions at Rumble

In related news, major shareholder Tether Global Investments Fund bought 44,355 shares of the company's stock in a transaction on Friday, February 6th. The shares were acquired at an average price of $5.48 per share, with a total value of $243,065.40. Following the transaction, the insider owned 105,174,015 shares of the company's stock, valued at $576,353,602.20. The trade was a 0.04% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders acquired 777,012 shares of company stock worth $4,222,236. 45.10% of the stock is currently owned by company insiders.

Institutional Trading of Rumble

Several hedge funds and other institutional investors have recently made changes to their positions in RUM. Meeder Asset Management Inc. purchased a new position in Rumble in the 3rd quarter worth $28,000. Mather Group LLC. purchased a new position in Rumble in the 3rd quarter worth $43,000. Northwestern Mutual Wealth Management Co. purchased a new position in Rumble in the 4th quarter worth $47,000. Daiwa Securities Group Inc. raised its stake in Rumble by 47.8% in the 4th quarter. Daiwa Securities Group Inc. now owns 9,254 shares of the company's stock worth $58,000 after acquiring an additional 2,993 shares during the last quarter. Finally, VestGen Advisors LLC purchased a new position in Rumble in the 4th quarter worth $64,000. Hedge funds and other institutional investors own 26.15% of the company's stock.

Rumble Trading Up 12.6%

Shares of RUM traded up $0.71 during midday trading on Thursday, hitting $6.29. 8,914,547 shares of the company's stock traded hands, compared to its average volume of 2,037,587. Rumble has a 1 year low of $4.62 and a 1 year high of $10.99. The firm's fifty day moving average is $5.42 and its 200-day moving average is $6.24. The stock has a market capitalization of $2.74 billion, a price-to-earnings ratio of -19.61 and a beta of 0.71.

Rumble (NASDAQ:RUM - Get Free Report) last issued its quarterly earnings data on Thursday, March 5th. The company reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.02). Rumble had a negative net margin of 81.32% and a negative return on equity of 39.76%. The business had revenue of $27.07 million for the quarter, compared to analysts' expectations of $27.09 million. During the same quarter in the prior year, the company posted ($1.15) EPS. The business's revenue for the quarter was down 10.3% on a year-over-year basis. On average, equities research analysts anticipate that Rumble will post -0.62 EPS for the current year.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Rumble in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company presently has an average rating of "Sell".

Rumble Company Profile

Rumble Inc operates a video-sharing platform designed to offer creators and audiences an alternative to traditional social media and streaming services. The company's primary business activities include hosting, distributing and monetizing user–generated and professional video content. Through its platform, Rumble enables content creators to retain a higher share of advertising revenue and maintain greater control over their intellectual property, while offering viewers open access to a wide range of videos spanning news, sports, entertainment and educational programming.

In addition to its core video platform, Rumble provides cloud–based video hosting and delivery services via Rumble Cloud, a content–delivery network (CDN) designed to support high–volume streaming and storage.

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