Rumble (RUM 1.12%) stock is slumping in Wednesday's trading. The company's share price was down 3.9% as of 3 p.m. ET and had been down as much as 5.8% earlier in the day.
NASDAQ: RUM
Key Data Points
Rumble's valuation is moving lower in conjunction with insider selling disclosures submitted to the Securities and Exchange Commission (SEC) yesterday. The stock is also seeing pressures related to the higher-than-anticipated inflation in the latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics.
Rumble stock slips on insider selling
Rumble submitted a series of filings to the SEC disclosing recent stock sales from company managers and members of its board of directors. On Feb. 7, CEO Christopher Pavlovski sold 354,849 shares of Rumble Class A common stock at a price of $7.50 per share. Following the sale, Pavlovski owned 522,927 shares of the company's class A common stock and also held much larger positions in other share classes.
Chief Financial Officer Brandon Alexandroff also sold more than 8.8 million shares of class A common stock at a price of $7.50 per share on Feb. 7. Meanwhile, Chief Content Officer Ramolo Claudio sold more than 6.2 million shares of class A common stock at $7.50 per share, and Chief Operating Officer Tyler Hughes sold more than 312,000 shares at the same price. Five other company officials and board members also sold stock on Feb. 7.
Inflation data is also pressuring Rumble today
In addition to the insider selling news, Rumble stock is also seeing pressures connected to inflation news today. The latest core CPI data showed that inflation came in at 3.3% in January, which topped the average estimate for inflation of 3.2% in the month. Meanwhile, the core CPI increased at a sequential monthly rate of 0.4% -- ahead of the average economist forecast for an increase of 0.3%.
With the latest inflation data, investors are starting to think that it's more likely that the Federal Reserve will hold off on any additional interest rate cuts this year. For Rumble and other growth-dependent companies operating at losses, that could mean a more challenging valuation backdrop.
