Revolve Group (NYSE: RVLV) received a boost in its price target from analysts at Morgan Stanley, increasing from $26.00 to $27.00. This adjustment reflects the brokerage’s ongoing confidence in the company, although it maintains an “equal weight” rating on the stock. The new price target suggests a potential downside of 12.73% from Revolve’s closing price prior to the report released on December 5, 2023.
Several other firms have also recently evaluated Revolve Group’s stock. On December 9, 2023, Guggenheim initiated coverage, assigning a “neutral” rating. Following that, on December 12, 2023, Stifel Nicolaus raised its price target from $28.00 to $33.00, while maintaining a “buy” rating. Robert W. Baird set a price target of $29.00 on December 17, 2023, and Jefferies Financial Group reaffirmed its “buy” rating with a target of $34.00 on December 18, 2023. Weiss Ratings also reiterated a “hold (c)” rating on October 8, 2023. Overall, one analyst rates the stock as a strong buy, nine as a buy, and seven as a hold, resulting in an average rating of “Moderate Buy” and a consensus price target of $27.50, according to MarketBeat.com.
Recent Earnings and Insider Activity
Revolve Group recently announced its quarterly earnings results on November 4, 2023. The company reported earnings per share (EPS) of $0.24, significantly surpassing the consensus estimate of $0.11 by $0.13. The firm’s revenue reached $295.63 million, slightly below analysts’ expectations of $297.36 million. In a year-over-year comparison, quarterly revenue increased by 4.4%, while the net margin stood at 4.64% and return on equity at 11.26%.
Recent insider trading activities have raised eyebrows. Chief Financial Officer Jesse Timmermans sold 5,349 shares on January 8, 2024, at an average price of $31.51, totaling approximately $168,546.99. Post-transaction, Timmermans holds 11,610 shares, valued at $365,831.10, marking a reduction of 31.54% in his ownership. CEO Michael Mente sold 68,995 shares on January 9, 2024, for about $2,116,766.60. Over the past 90 days, insiders have offloaded 624,325 shares, amounting to a value of $18,065,991. Currently, corporate insiders own 46.56% of the company’s stock.
Institutional Investment Trends
Institutional investors have been active in modifying their stakes in Revolve Group. The State of Alaska Department of Revenue acquired a new position valued at approximately $46,000 during the third quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych invested $60,000 in shares during the second quarter, while Elevation Point Wealth Partners LLC purchased a stake worth $68,000. Quarry LP saw a significant increase in its holdings, boosting its position by 6,932.1% in the third quarter, now owning 3,727 shares valued at $79,000. Similarly, Logan Capital Management Inc. increased its stake by 35.5%, now holding 5,579 shares valued at $112,000.
As of now, institutional investors collectively own 67.60% of Revolve Group’s stock, indicating strong confidence in the company’s future. Founded in 2003 and headquartered in Cerritos, California, Revolve Group is recognized as a leading online fashion retailer, primarily catering to millennial and Gen Z consumers. The company offers a curated selection of apparel, accessories, and beauty products from over 500 brands, alongside its private label offerings.
With a focus on providing a trend-driven shopping experience, Revolve continues to expand its market presence beyond North America, launching localized sites and logistics centers in Europe and the Middle East.
