Rumble (NASDAQ:RUM) Stock Jumps 11.8% – Here’s Why

Rumble Inc. (NASDAQ:RUM)’s share price shot up 11.8% during mid-day trading on Wednesday. The company traded as high as $5.76 and last traded at $5.7140. 2,337,631 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 3,295,880 shares. The stock had previously closed at $5.11.

Rumble News Roundup

These are some of the RUM news items that stood out recently:

• Positive Sentiment: Trading activity included 25,642 call options, 182% above the typical daily volume. This may reflect increased bullish positioning, though options activity alone does not confirm investor expectations.
• Neutral Sentiment: Fourth-quarter revenue guidance is $88 million–$94 million, a range that spans the $92.2 million analyst consensus; its midpoint is slightly below that estimate.
• Negative Sentiment: Rumble reported a third-quarter loss of $0.19 per share, worse than the $0.11 consensus loss cited in one report. The loss also widened from $0.08 per share a year earlier, raising concerns about profitability despite revenue growth. Earnings report and call

Analysts Set New Price Targets

A number of research firms have recently commented on RUM. Weiss Ratings restated a “sell (d-)” rating on shares of Rumble in a research report on Thursday, October 22nd. Zacks Research lowered shares of Rumble from a “hold” rating to a “strong sell” rating in a report on Monday, October 12th. Lake Street Capital started coverage on shares of Rumble in a research note on Tuesday, October 6th. They issued a “hold” rating and a $25.00 target price on the stock. Finally, Wall Street Zen downgraded shares of Rumble from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. One investment analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Rumble has a consensus rating of “Sell” and a consensus target price of $25.00.

Rumble Stock Performance

The firm has a market capitalization of $2.92 billion, a PE ratio of -9.99 and a beta of 1.35. 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 company has a 50-day moving average of $6.98 and a 200 day moving average of $6.67.

Rumble (NASDAQ:RUM) last released its quarterly earnings results on Wednesday, November 11th. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.08). Rumble had a negative net margin of 134.60% and a negative return on equity of 22.77%. The company’s revenue for the quarter was up 289.5% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.06) earnings per share. Equities research analysts predict that Rumble Inc. will post -0.55 EPS for the current year.

Institutional Investors Weigh In On Rumble

A number of institutional investors and hedge funds have recently bought and sold shares of RUM. Cooper Creek Partners Management LLC increased its holdings in shares of Rumble by 54.1% in the 1st quarter. Cooper Creek Partners Management LLC now owns 5,242,497 shares of the company’s stock worth $26,737,000 after buying an additional 1,840,893 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of Rumble during the 2nd quarter valued at $69,000. Corient Private Wealth LP purchased a new stake in shares of Rumble during the 2nd quarter valued at $164,000. Mather Group LLC. bought a new stake in shares of Rumble during the 3rd quarter worth $45,000. Finally, Momentous Wealth Management Inc. bought a new stake in shares of Rumble during the 3rd quarter worth $106,000. 26.15% of the stock is owned by hedge funds and other institutional investors.

About Rumble

Rumble Inc. operates a video-sharing platform where users can upload, watch and share videos. The company also offers live-streaming tools and services that help creators publish and monetize content, including through advertising and subscriptions. Founded in 2013 by Chris Pavlovski, Rumble has expanded beyond video distribution into cloud computing. Its Rumble Cloud business provides infrastructure services to organizations seeking alternatives to larger cloud providers. The company serves creators, viewers and business customers in multiple countries, with a substantial presence in North America.