Stock Traders Buy High Volume of Rumble Call Options (NASDAQ:RUM)

Key Points

• Rumble call-option activity surged: Traders bought 34,392 call options, roughly 334% above the typical volume of 7,929 contracts.
• Shares rose 11.4% to $8.31 during Monday trading, though the stock remains well below its one-year high of $10.54. Institutional investors and hedge funds own 26.15% of the company.
• Analyst sentiment remains bearish: Rumble has an average “Sell” rating, while its latest quarter showed stronger-than-expected revenue growth of 61% year over year but an earnings-per-share miss.

Rumble Inc. (NASDAQ:RUM - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders acquired 34,392 call options on the company. This is an increase of approximately 334% compared to the typical volume of 7,929 call options.

Analyst Ratings Changes

A number of analysts have issued reports on RUM shares. Wall Street Zen lowered Rumble from a "hold" rating to a "sell" rating in a research report on Saturday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rumble in a research note on Friday, July 24th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Rumble presently has an average rating of "Sell".

Institutional Trading of Rumble

Several hedge funds have recently modified their holdings of the stock. Cantor Fitzgerald L. P. grew its stake in Rumble by 26.5% during the 4th quarter. Cantor Fitzgerald L. P. now owns 9,326,205 shares of the company's stock worth $58,942,000 after purchasing an additional 1,951,768 shares in the last quarter. Cooper Creek Partners Management LLC raised 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 in the last quarter. Geode Capital Management LLC boosted its stake in shares of Rumble by 2.9% in the 4th quarter. Geode Capital Management LLC now owns 2,821,230 shares of the company's stock valued at $17,834,000 after buying an additional 78,303 shares during the period. UBS Group AG boosted its stake in shares of Rumble by 4.6% in the 3rd quarter. UBS Group AG now owns 1,064,072 shares of the company's stock valued at $7,704,000 after buying an additional 46,925 shares during the period. Finally, Bank of America Corp DE grew its position 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 worth $5,725,000 after buying an additional 2,678 shares in the last quarter. 26.15% of the stock is currently owned by institutional investors and hedge funds.

Rumble Stock Up 11.4%

Shares of NASDAQ RUM traded up $0.85 during midday trading on Monday, hitting $8.31. The company's stock had a trading volume of 3,441,287 shares, compared to its average volume of 2,800,455. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.12 and a quick ratio of 2.12. The firm has a market capitalization of $4.12 billion, a price-to-earnings ratio of -14.08 and a beta of 1.14. The business's fifty day simple moving average is $6.50 and its two-hundred day simple moving average is $6.39. Rumble has a 1 year low of $4.62 and a 1 year high of $10.54.

Rumble (NASDAQ:RUM - Get Free Report) last announced 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 return on equity of 22.77% and a negative net margin of 134.60%.The business had revenue of $40.37 million for the quarter, compared to analysts' expectations of $31.23 million. During the same period in the previous year, the company earned ($0.12) earnings per share. Rumble's quarterly revenue was up 61.0% on a year-over-year basis. On average, equities analysts predict that Rumble will post -0.22 EPS for the current year.

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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