Rumble Inc. (NASDAQ: RUM) stock fell -12.67% on Monday to $5.93 against a previous-day closing price of $6.79. With 5.81 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.1 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $6.68 whereas the lowest price it dropped to was $5.85. The 52-week range on RUM shows that it touched its highest point at $17.23 and its lowest point at $5.81 during that stretch. It currently has a 1-year price target of $10.00. Beta for the stock currently stands at 0.61.
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 down-trending over the past week, with a drop of -14.18%, but this was down by -18.09% over a month. Three-month performance dropped to -36.65% while six-month performance fell -25.50%. The stock lost -48.97% in the past year, while it has lost -0.34% so far this year. A look at the trailing 12-month EPS for RUM yields -0.30 with Next year EPS estimates of -0.19. For the next quarter, that number is -0.17. This implies an EPS growth rate of -2.00% for this year and 69.40% for next year.
Float and Shares Shorts:
At present, 201.26 million RUM shares are outstanding with a float of 79.01 million shares on hand for trading. On Aug 30, 2023, short shares totaled 11.29 million, which was 4.03% higher than short shares on Jul 30, 2023. In addition to Mr. Christopher Pavlovski as the firm’s Founder, Chairman & CEO, Dr. Tyler Hughes serves as its Chief Operating Officer.
Through their ownership of 19.50% of RUM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.98% of RUM, in contrast to 16.49% held by mutual funds. Shares owned by individuals account for 13.26%. As the largest shareholder in RUM with 8.30% of the stake, Cantor Fitzgerald & Co. holds 9,332,035 shares worth 9,332,035. A second-largest stockholder of RUM, The Vanguard Group, Inc., holds 6,215,645 shares, controlling over 5.53% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in RUM, holding 1,686,978 shares or 1.50% stake. With a 1.94% stake in RUM, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,181,400 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.54% of RUM stock, is the second-largest Mutual Fund holder. It holds 1,734,604 shares valued at 14.52 million. Vanguard Extended Market Index Fu holds 1.00% of the stake in RUM, owning 1,122,042 shares worth 9.39 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, RUM reported revenue of $4.40M and operating income of -$4.16M. The EBITDA in the recently reported quarter was -$3.95M and diluted EPS was -$0.03.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RUM since 0 analysts follow the stock currently. 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 $10.00 and a low target of $10.00, the average target price over the next 12 months is $10.00. Based on these targets, RUM could surge 68.63% to reach the target high and rise by 68.63% to reach the target low. Reaching the average price target will result in a growth of 68.63% 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.
Summary of Insider Activity:
Insiders traded RUM stock several times over the past three months with 6 Buys and 1 Sells. In these transactions, 192,679 shares were bought while 6,147 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 6 over the past year. The total number of shares bought during that period was 522,220 while 46,456 shares were sold.