Stock Traders Purchase Large Volume of Rumble Call Options (NASDAQ:RUM)

Rumble Inc. (NASDAQ:RUM) saw unusually large options trading activity on Wednesday. Stock traders bought 25,642 call options on the stock. This is an increase of 182% compared to the average daily volume of 9,101 call options.

Recent Rumble Headlines

These are some of the RUM headlines that stood out recently:

• Positive Sentiment: Rumble’s AI infrastructure business, Quake AI, plans to deploy NVIDIA’s Minerva platform to help improve AI-factory operations. The announcement may bolster the company’s AI infrastructure prospects, though it describes a planned deployment. Article: Quake AI Plans to Deploy NVIDIA Minerva
• Neutral Sentiment: Call-option purchases were unusually high, about 182% above typical daily volume. This suggests increased bullish positioning but is a trading signal rather than a change in the company’s fundamentals.
• Negative Sentiment: Rumble reported a third-quarter loss of $0.19 per share, worse than analyst expectations and the $0.06 loss a year earlier, tempering the strong revenue report. Article: Rumble Third-Quarter Earnings

Rumble Stock Performance

RUM opened at $5.96 on Thursday. Rumble has a one year low of $4.49 and a one year high of $10.60. 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 business has a 50 day simple moving average of $6.93 and a two-hundred day simple moving average of $6.67.

Rumble (NASDAQ:RUM) last issued its quarterly earnings data on Wednesday, November 11th. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.08). The business had revenue of $96.58 million during the quarter, compared to the consensus estimate of $89.00 million. Rumble had a negative return on equity of 22.77% and a negative net margin of 134.60%. Rumble’s quarterly revenue was up 289.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.06) earnings per share. As a group, equities research analysts anticipate that Rumble will post -0.55 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Rumble

Several institutional investors and hedge funds have recently modified their holdings of the stock. Cooper Creek Partners Management LLC boosted its stake in shares of Rumble by 54.1% during 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. Bank of New York Mellon Corp raised its stake in Rumble by 0.5% in 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 lifted its holdings in Rumble by 2.1% in the first quarter. Sigma Planning Corp now owns 162,699 shares of the company’s stock worth $830,000 after buying an additional 3,349 shares during the period. Russell Investments Group Ltd. lifted its holdings in Rumble by 21.8% in the third quarter. Russell Investments Group Ltd. now owns 72,661 shares of the company’s stock worth $549,000 after buying an additional 12,989 shares during the period. Finally, Silver Oak Securities Incorporated purchased a new stake in Rumble in the third quarter worth about $341,000. 26.15% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

RUM has been the subject of a number of recent analyst reports. Zacks Research lowered Rumble from a “hold” rating to a “strong sell” rating in a report on Monday, October 12th. Lake Street Capital started coverage on Rumble in a research note on Tuesday, October 6th. They issued a “hold” rating and a $25.00 target price for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rumble in a research note on Thursday, October 22nd. Finally, Wall Street Zen lowered Rumble from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. One research analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Rumble has an average rating of “Sell” and a consensus target price of $25.00.

Rumble Company Profile

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.