Rumble (NASDAQ:RUM) Shares Up 6.2% - Time to Buy?

Key Points

• Rumble shares rose 6.2% to about $8.20 in midday trading, although volume was 76% below the stock’s average daily level.
• Analysts remain bearish: Weiss Ratings maintained a “sell” rating, Wall Street Zen downgraded the stock to “sell,” and MarketBeat data shows an average rating of “Sell.”
• Rumble’s latest quarter showed 61% year-over-year revenue growth to $40.37 million, but its $0.28 per-share loss was wider than expected and the company reported a negative 134.6% net margin.

Rumble Inc. (NASDAQ:RUM - Get Free Report)'s share price was up 6.2% during mid-day trading on Wednesday. The stock traded as high as $8.32 and last traded at $8.2020. Approximately 786,270 shares traded hands during trading, a decline of 76% from the average daily volume of 3,219,290 shares. The stock had previously closed at $7.72.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Rumble in a report on Friday, July 24th. Wall Street Zen lowered shares of 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 Sell rating, According to data from MarketBeat, the company has an average rating of "Sell".

Rumble Price Performance

The company has a quick ratio of 2.12, a current ratio of 2.12 and a debt-to-equity ratio of 0.25. The stock's 50-day moving average price is $7.77 and its 200-day moving average price is $7.03. The company has a market capitalization of $3.93 billion, a price-to-earnings ratio of -13.45 and a beta of 1.21.

Rumble (NASDAQ:RUM - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.28) earnings per share 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 company had revenue of $40.37 million during the quarter, compared to analyst estimates of $31.23 million. During the same period in the prior year, the business earned ($0.12) EPS. The business's revenue for the quarter was up 61.0% on a year-over-year basis. Equities research analysts anticipate that Rumble Inc. will post -0.55 earnings per share for the current year.

Institutional Investors Weigh In On Rumble

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of New York Mellon Corp grew its holdings 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 buying an additional 1,475 shares in the last quarter. Sigma Planning Corp raised its position in Rumble by 2.1% in the 1st quarter. Sigma Planning Corp now owns 162,699 shares of the company's stock valued at $830,000 after buying an additional 3,349 shares during the last quarter. Handelsbanken Fonder AB lifted 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 acquiring an additional 10,900 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in Rumble in the 2nd quarter valued at approximately $69,000. Finally, State of Wyoming acquired a new position in Rumble during the 1st quarter worth approximately $62,000. 26.15% of the stock is owned by institutional investors and hedge funds.

Rumble Company Profile

Rumble Inc operates a video-sharing and cloud services platform. Its flagship service enables users to upload, watch, and share video content, while providing creators with tools for audience engagement and monetization. The platform serves a broad range of users and content creators, with an emphasis on supporting independent publishers and offering an alternative to larger video-hosting services.

The company also provides digital infrastructure through Rumble Cloud, which offers cloud hosting and related services to businesses and organizations.

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