Traders Buy Large Volume of Call Options on Rumble (NASDAQ:RUM)

Key Points

• Unusual options activity: Traders purchased 34,495 Rumble call options, 309% above the typical daily volume of 8,439.
• Analyst sentiment remains negative: Rumble received a downgrade to “sell,” and the analyst consensus is also “Sell.”
• Mixed operating performance: Quarterly revenue rose 61% year over year to $40.37 million and exceeded estimates, but the company reported an EPS loss of $0.28, wider than expected, alongside deeply negative margins.

Rumble Inc. (NASDAQ:RUM - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Traders purchased 34,495 call options on the stock. This is an increase of 309% compared to the typical daily volume of 8,439 call options.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Rumble from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rumble in a research report on Friday, July 24th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Rumble has an average rating of "Sell".

Hedge Funds Weigh In On Rumble

A number of hedge funds and other institutional investors have recently bought and sold shares of RUM. Cooper Creek Partners Management LLC lifted its position 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 purchasing an additional 1,840,893 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new position in Rumble during the 4th quarter valued at about $47,000. Corient Private Wealth LP bought a new position in Rumble in the 2nd quarter worth about $164,000. California State Teachers Retirement System grew its position in Rumble by 627.5% in the 2nd quarter. California State Teachers Retirement System now owns 516,881 shares of the company's stock worth $3,277,000 after purchasing an additional 445,828 shares during the last quarter. Finally, Handelsbanken Fonder AB increased its stake in shares of 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 purchasing an additional 10,900 shares during the period. 26.15% of the stock is currently owned by institutional investors and hedge funds.

Rumble Price Performance

Shares of NASDAQ RUM opened at $8.96 on Tuesday. Rumble has a twelve month low of $4.62 and a twelve month high of $10.60. The company has a current ratio of 2.12, a quick ratio of 2.12 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $4.44 billion, a price-to-earnings ratio of -15.19 and a beta of 1.14. The business has a 50 day simple moving average of $6.85 and a 200-day simple moving average of $6.63.

Rumble (NASDAQ:RUM - Get Free Report) last announced 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). Rumble had a negative return on equity of 22.77% and a negative net margin of 134.60%.The firm had revenue of $40.37 million for the quarter, compared to the consensus estimate of $31.23 million. During the same quarter last year, the business earned ($0.12) earnings per share. The business's revenue for the quarter was up 61.0% compared to the same quarter last year. As a group, equities research analysts expect that Rumble will post -0.55 earnings per share for the current year.

About Rumble

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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