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RumbleOn (RMBL) Insiders Active After Transformative M&A Deal

by | Jun 24, 2021

RumbleOn (RMBL) insiders active buying stock over the last month with two different directors adding at $39 to $39.50, one buy over $240K. In March, insiders bought stock around $57 while the chairman and CEO was buying stock in 2020 around $28. RMBL is an ecommerce platform centered around powersports with buying, selling, trading, and financing vehicles and access to virtual inventory and customers. RMBL is unique within the online auto buying experience as neither Carvana nor CarMax sell motorcycles or off-road vehicles. The company has also expanded into transportation services between dealerships, auctions, and customers. In March, the company executed a significant M&A deal for RideNow for $575M in cash and stock.  RideNow is the nation’s largest powersports dealer which will greatly expand the NewCo’s omnichannel reach with a dominant footprint and retail brand. RMBL thinks the combination will allow them to more quickly gain share in the highly fragmented, $100B powersports market in the US as they reach more consumers at a time when interest in ORV and motorcycles is rising. RideNow has 40 retail locations and sales across ATVs, UTVs, motorcycles, snowmobiles, and personal watercraft. The company noted in March, “this transaction is about unlocking incremental sales, capturing additional monetization opportunities such as parts and services, and consolidating a fragmented industry to drive efficiency and improve the customer experience.” The $142.5M company trades 0.5X EV/sales with expectations in 2021 for 84% revenue growth and 102% growth in 2022. They expect to generate positive EBITDA in FY22. On 6/21 the company reported Q2 revenue would be between $140M to $150M, up 67% Y/Y. Short interest is 0.5%. Analysts have an average target for shares of $75 with a Street High $80.