Rumble (NASDAQ:RUM) Trading Up 8.9% - Still a Buy?

Key Points

• Shares of Rumble climbed 8.9% to about $6.08 on Thursday with ~1.08 million shares traded (down 44% vs. average), giving the company a market cap near $2.75 billion.
• Analysts have a consensus Sell rating after Rumble reported Q results that missed expectations (EPS -$0.13 vs. -$0.11; revenue $27.07M vs. $27.09M) and showed negative profitability measures, including an 81.3% net margin and a 10.3% YoY revenue decline.
• Major shareholder Tether Global Investments bought 538,955 shares at ~$5.41 on Feb. 5, raising its stake to 105.13 million shares; insiders collectively own about 45.1% of the company while institutions hold ~26.2%.

Rumble Inc. (NASDAQ:RUM - Get Free Report) was up 8.9% during trading on Thursday . The stock traded as high as $6.00 and last traded at $6.0790. Approximately 1,079,035 shares were traded during mid-day trading, a decline of 44% from the average daily volume of 1,925,042 shares. The stock had previously closed at $5.58.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a "sell (e+)" rating on shares of Rumble in a research note on Thursday, January 22nd. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Rumble currently has a consensus rating of "Sell".

Rumble Stock Performance

The firm has a market capitalization of $2.75 billion, a price-to-earnings ratio of -19.77 and a beta of 0.71. The business has a 50 day simple moving average of $5.42 and a 200-day simple moving average of $6.24.

Rumble (NASDAQ:RUM - Get Free Report) last released its quarterly earnings results on Thursday, March 5th. The company reported ($0.13) earnings per share for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.02). The business had revenue of $27.07 million for the quarter, compared to analysts' expectations of $27.09 million. Rumble had a negative return on equity of 39.76% and a negative net margin of 81.32%.The business's revenue for the quarter was down 10.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($1.15) earnings per share. Equities analysts predict that Rumble Inc. will post -0.62 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, major shareholder Tether Global Investments Fund purchased 538,955 shares of the firm's stock in a transaction on Thursday, February 5th. The shares were bought at an average cost of $5.41 per share, for a total transaction of $2,915,746.55. Following the completion of the purchase, the insider directly owned 105,129,660 shares of the company's stock, valued at approximately $568,751,460.60. This trade represents a 0.52% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders acquired 777,012 shares of company stock worth $4,222,236 in the last 90 days. 45.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rumble

Several institutional investors have recently bought and sold shares of RUM. Cantor Fitzgerald L. P. grew its position in Rumble by 26.5% in the 4th 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 in the last quarter. Barclays PLC grew its position in Rumble by 177.8% in the 4th quarter. Barclays PLC now owns 417,454 shares of the company's stock valued at $2,638,000 after acquiring an additional 267,177 shares in the last quarter. Neo Ivy Capital Management acquired a new position in Rumble in the 3rd quarter valued at about $1,563,000. Squarepoint Ops LLC purchased a new position in shares of Rumble in the 3rd quarter valued at about $1,346,000. Finally, Janus Henderson Group PLC boosted its stake in shares of Rumble by 413.8% in the 4th quarter. Janus Henderson Group PLC now owns 176,447 shares of the company's stock valued at $1,115,000 after buying an additional 142,107 shares during the period. 26.15% of the stock is owned by institutional investors and hedge funds.

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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