RUM Group Inc (NYSE:RUM) stock turned higher overnight after Texas Capital initiated coverage with a "buy" rating and a $15 price target, implying a 94% upside to yesterday's close. The firm cited the company's pivot into AI infrastructure. RUM shares were last seen up 2.7% to trade at $7.93.
More analyst coverage could be on the way, too. Heading into today, only three brokerages followed the equity, with one "strong buy" and two "holds" on paper.
Today's price action has the stock poised to snap a three-session losing streak, though gains are being capped by the overhead 20-day moving average. RUM sports a 30.4% year-to-date gain.
Short interest is elevated at the moment, with the 28.57 million shares sold short representing 21.4% of the RUM's available float. It would take short sellers nearly seven days to buy back their bearish bets, at the average pace of daily trading.
RUM options are affordable at the moment, too, per its Schaeffer's Volatility Index (SVI) of 85% which stands higher than just 23% of readings from the past year. In other words, this implies that near-term options traders are pricing in relatively low volatility expectations.
