business

5 investors betting big on Rumble (RUM) stocks


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Former ad hoc acquisition company (SPAC) To scold (NASDAQ:RUM) made headlines after successfully de-SPACing earlier this week. Rumble operates as a conservative media platform that seeks to compete with alphabetical (NASDAQ:GOOG, NASDAQ:GOOGL) Youtube. One of the advantages of the platform over Youtube is that it pays its creators around 60% of its revenue, while Youtube pays around 20%. Still, Youtube is the main video sharing website and hence has a massive user base which far outweighs Rumble’s user base. It’s likely that if Rumble grows even further, it will reduce its revenue share figure.

As part of the transaction, Rumble will receive approximately $400 million in gross proceeds. Proceeds will go towards building infrastructure, marketing, attracting new content creators, and other general corporate purposes. Meanwhile, total redemptions were just 0.1%, a sign of RUM’s shareholder loyalty.

The RUM ticker is an ode to the company’s goals of “Protecting and Promoting Freedom”. In 1764, the Sugar Act was enacted, which imposed regulations and taxes on a major component of rum, molasses. Rum was an extremely popular drink during colonial times and was ultimately a catalyst for the American Revolution.

So who is betting big on RUM stock?

Five investors are betting big on RUM Stock

Tracking institutional ownership is important because these large investors provide liquidity and price support for stocks. During the second quarter, 86 13F filers reported owning RUM, an increase of two funds from the previous quarter. Moreover, the institutional put/call ratio is at a low of 0.48, against 0.81 in the first quarter. This means that institutions hold more call options against the company than sell margins by a wide margin. In total, institutions hold 2.29 million call options against RUM and 1.11 put options.

With that in mind, let’s take a look at the main shareholders of RUM:

  1. Beryl Capital Management: 1.79 million shares. Beryl purchased its entire stake during the second quarter.
  2. International Susquehanna Group: 588,288 shares. Susquehanna purchased 240,819 shares during the second quarter.
  3. Millennium Management: 461,418 shares. Millennium sold 6,781 shares during the second quarter.
  4. JAT Capital Management: 340,104 shares. JAT purchased 168,697 shares during the second quarter.
  5. Empyrean Capital Partners: 333,594 shares. Empyrean’s position remained unchanged during the second quarter.

At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Eddie Pan specializes in institutional investments and insider trading. He writes for InvestorPlace’s Today’s Market team, which focuses on the latest news on popular stocks.

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