RumbleON, Inc. (NASDAQ:RMBL) insiders have recently purchased stock and their bets paid off last week as company hit US$261m market cap
Key Insights
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Significant insider control over RumbleON implies vested interests in company growth
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A total of 3 investors have a majority stake in the company with 55% ownership
A look at the shareholders of RumbleON, Inc. (NASDAQ:RMBL) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Our data shows that insiders recently bought shares in the company and they were rewarded after market cap rose US$27m last week.
Let's delve deeper into each type of owner of RumbleON, beginning with the chart below.
Check out our latest analysis for RumbleON
What Does The Institutional Ownership Tell Us About RumbleON?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
RumbleON already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of RumbleON, (below). Of course, keep in mind that there are other factors to consider, too.
Our data indicates that hedge funds own 23% of RumbleON. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Mark Tkach is currently the company's largest shareholder with 18% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 18% by the third-largest shareholder. William Coulter, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 55% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.