Rumble (NASDAQ:RUM) Stock Sees Unusually High Call Option Buying

Key Points

• Unusual options activity: Investors purchased 35,900 Rumble call options, 304% above the average volume of 8,897 contracts.
• Rumble’s shares traded near $7.03, within a 52-week range of $4.62 to $10.60. The company reported quarterly revenue growth of 61% year over year to $40.37 million but missed earnings estimates, posting an adjusted loss of $0.28 per share.
• Analyst sentiment remains cautious: Rumble has a consensus “Reduce” rating, with one analyst rating the stock Hold and another rating it Sell; the consensus price target is $25.

Rumble Inc. (NASDAQ:RUM - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock investors purchased 35,900 call options on the stock. This represents an increase of 304% compared to the average volume of 8,897 call options.

Rumble Stock Performance

NASDAQ RUM traded up $0.03 during trading on Friday, reaching $7.03. 2,212,411 shares of the company's stock were exchanged, compared to its average volume of 3,270,640. The business has a 50 day moving average price of $7.98 and a 200-day moving average price of $7.14. The stock has a market capitalization of $3.48 billion, a P/E ratio of -11.91 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 has a fifty-two week low of $4.62 and a fifty-two week high of $10.60.

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

Institutional Investors Weigh In On Rumble

Several hedge funds have recently added to or reduced their stakes in RUM. Integrated Wealth Concepts LLC bought a new position in shares of Rumble in the second quarter valued at about $69,000. Corient Private Wealth LP acquired a new position in Rumble in the 2nd quarter valued at about $164,000. Handelsbanken Fonder AB grew its stake in Rumble by 38.1% in the 2nd quarter. Handelsbanken Fonder AB now owns 39,500 shares of the company's stock valued at $250,000 after buying an additional 10,900 shares during the last quarter. Cooper Creek Partners Management LLC raised its holdings in Rumble by 54.1% in the 1st quarter. Cooper Creek Partners Management LLC now owns 5,242,497 shares of the company's stock valued at $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 first quarter worth approximately $62,000. Institutional investors and hedge funds own 26.15% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Lake Street Capital initiated coverage on Rumble in a report on Tuesday. They issued a "hold" rating and a $25.00 price objective for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Rumble in a research report 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 equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Rumble currently has a consensus rating of "Reduce" and a consensus target price of $25.00.

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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