Rumble (NASDAQ:RUM) Shares Down 5.7% - Here's Why

Key Points

• Rumble shares fell 5.7% to approximately $8.47 on Monday, with trading volume down 82% from the average session.
• Analyst sentiment is negative: Weiss Ratings maintained a “sell” rating, Wall Street Zen downgraded the stock to “sell,” and MarketBeat reports an overall average rating of “Sell.”
• Rumble’s latest quarter showed strong revenue growth of 61% year over year to $40.37 million, but the company missed EPS estimates and reported a $0.28 per-share loss, alongside a negative net margin of 134.6%.

Rumble Inc. (NASDAQ:RUM - Get Free Report) was down 5.7% during trading on Monday . The company traded as low as $8.42 and last traded at $8.4650. 532,354 shares traded hands during trading, a decline of 82% from the average session volume of 2,900,469 shares. The stock had previously closed at $8.98.

Wall Street Analyst Weigh In

RUM has been the subject of a number of recent analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of Rumble in a report on Friday, July 24th. Wall Street Zen downgraded shares of Rumble from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, Rumble presently has an average rating of "Sell".

Rumble Stock Down 4.7%

The company has a debt-to-equity ratio of 0.25, a quick ratio of 2.12 and a current ratio of 2.12. The stock has a fifty day moving average price of $6.81 and a 200-day moving average price of $6.62. The firm has a market cap of $4.24 billion, a PE ratio of -14.51 and a beta of 1.14.

Rumble (NASDAQ:RUM - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $31.23 million. During the same quarter in the previous year, the firm posted ($0.12) EPS. The business's revenue was up 61.0% compared to the same quarter last year. Research analysts expect that Rumble Inc. will post -0.55 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. acquired a new stake in Rumble during the 4th quarter valued at $47,000. Daiwa Securities Group Inc. lifted its holdings 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 buying an additional 2,993 shares in the last quarter. State of Wyoming acquired a new position in Rumble in the 1st quarter worth $62,000. VestGen Advisors LLC purchased a new position in Rumble in the 4th quarter valued at about $64,000. Finally, NewEdge Advisors LLC grew its stake in shares of Rumble by 2,905.9% during the fourth quarter. NewEdge Advisors LLC now owns 10,250 shares of the company's stock valued at $65,000 after acquiring an additional 9,909 shares in the last quarter. 26.15% of the stock is owned by institutional investors and hedge funds.

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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