An analyst sees good growth prospects for Rumble Inc. (RUM)

Rumble Inc. (NASDAQ: RUM) stock jumped 6.79% on Friday to $9.60 against a previous-day closing price of $8.98. With 1.14 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.03 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $9.90 whereas the lowest price it dropped to was $9.00. The 52-week range on RUM shows that it touched its highest point at $18.52 and its lowest point at $5.81 during that stretch. It currently has a 1-year price target of $15.00.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RUM was up-trending over the past week, with a rise of 6.61%, but this was up by 31.26% over a month. Three-month performance surged to 17.59% while six-month performance fell -4.91%. The stock lost -23.97% in the past year, while it has gained 61.26% so far this year. For the next quarter, that number is -0.02. This implies an EPS growth rate of -968.50% for this year and 25.00% for next year.

Float and Shares Shorts:

At present, 384.91 million RUM shares are outstanding with a float of 135.97 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.66 million, which was 0.95% higher than short shares on. In addition to Mr. Christopher Pavlovski as the firm’s Founder, Chairman & CEO, Mr. Brandon Alexandroff serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 5.89% of RUM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 2.50% of RUM, in contrast to 14.95% held by mutual funds. Shares owned by individuals account for 11.04%. As the largest shareholder in RUM with 10.06% of the stake, Cantor Fitzgerald & Co. holds 11,214,000 shares worth 11,214,000. A second-largest stockholder of RUM, Eminence Capital LP, holds 1,500,000 shares, controlling over 1.35% of the firm’s shares. JAT Capital Management LP is the third largest shareholder in RUM, holding 597,423 shares or 0.54% stake. With a 0.78% stake in RUM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 873,200 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 0.65% of RUM stock, is the second-largest Mutual Fund holder. It holds 718,652 shares valued at 4.28 million. Vanguard Small Cap Value Index Fu holds 0.23% of the stake in RUM, owning 251,192 shares worth 1.49 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RUM since 2 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RUM analysts setting a high price target of $15.00 and a low target of $15.00, the average target price over the next 12 months is $15.00. Based on these targets, RUM could surge 56.25% to reach the target high and rise by 56.25% to reach the target low. Reaching the average price target will result in a growth of 56.25% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. Analysts have provided yearly estimates in a range of -$0.10 being high and -$0.13 being low. For RUM, this leads to a yearly average estimate of -$0.12. Based on analyst estimates, the high estimate for the next quarter is -$0.01 and the low estimate is -$0.02. The average estimate for the next quarter is thus -$0.01.

Summary of Insider Activity:

Insiders traded RUM stock several times over the past three months with 10 Buys and 0 Sells. In these transactions, 143,630 shares were bought while 0 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 11,377,630 while 0 shares were sold.

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