Rumble (NASDAQ:RUM) Shares Down 7.5% - Here's Why

Key Points

• Shares of Rumble fell 7.5% to about $6.39 on Tuesday, with roughly 1.34 million shares traded — a 38% decline from average daily volume.
• Rumble missed quarterly expectations (EPS of ($0.13) vs. ($0.11) expected) and reported revenue of $27.07M, down 10.3% year-over-year, leaving the company unprofitable and with a consensus "Sell" rating.
• Major shareholder Tether bought additional shares and insiders now own 70.10% of the company while institutional investors hold about 26.15%, signaling highly concentrated insider ownership.

Shares of Rumble Inc. (NASDAQ:RUM - Get Free Report) dropped 7.5% during trading on Tuesday . The company traded as low as $6.50 and last traded at $6.3850. Approximately 1,336,899 shares traded hands during trading, a decline of 38% from the average daily volume of 2,144,852 shares. The stock had previously closed at $6.90.

Analyst Upgrades and Downgrades

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

Rumble Stock Down 7.2%

The firm has a market capitalization of $2.79 billion, a P/E ratio of -20.04 and a beta of 0.71. The business has a 50-day moving average price of $5.46 and a 200-day moving average price of $6.21.

Rumble (NASDAQ:RUM - Get Free Report) last released its quarterly earnings data on Thursday, March 5th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.02). The firm had revenue of $27.07 million for the quarter, compared to the consensus estimate of $27.09 million. Rumble had a negative net margin of 81.32% and a negative return on equity of 39.76%. The business's revenue for the quarter was down 10.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($1.15) earnings per share. As a group, sell-side analysts forecast that Rumble Inc. will post -0.32 EPS for the current year.

Insider Activity

In other news, major shareholder Tether Global Investments Fund acquired 44,355 shares of the stock in a transaction dated Friday, February 6th. The shares were acquired at an average cost of $5.48 per share, for a total transaction of $243,065.40. Following the completion of the transaction, the insider owned 105,174,015 shares in the company, valued at approximately $576,353,602.20. This trade represents a 0.04% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders purchased 777,012 shares of company stock worth $4,222,236 in the last quarter. Insiders own 70.10% of the company's stock.

Institutional Trading of Rumble

A number of institutional investors and hedge funds have recently modified their holdings of the company. Cantor Fitzgerald L. P. grew its position in Rumble by 26.5% in the fourth quarter. Cantor Fitzgerald L. P. now owns 9,326,205 shares of the company's stock valued at $58,942,000 after acquiring an additional 1,951,768 shares during the period. Vanguard Group Inc. lifted its stake in shares of Rumble by 1.4% during the third quarter. Vanguard Group Inc. now owns 8,934,542 shares of the company's stock valued at $64,686,000 after acquiring an additional 122,788 shares during the period. Geode Capital Management LLC lifted its stake in shares of Rumble by 2.9% during the fourth quarter. Geode Capital Management LLC now owns 2,821,230 shares of the company's stock valued at $17,834,000 after acquiring an additional 78,303 shares during the period. UBS Group AG lifted its stake in shares of Rumble by 4.6% during the third quarter. UBS Group AG now owns 1,064,072 shares of the company's stock valued at $7,704,000 after acquiring an additional 46,925 shares during the period. Finally, Bank of America Corp DE lifted its stake in shares of Rumble by 0.4% during the second quarter. Bank of America Corp DE now owns 637,500 shares of the company's stock valued at $5,725,000 after acquiring an additional 2,678 shares during the period. 26.15% of the stock is currently owned by institutional investors.

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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