Revolve Group (NYSE:RVLV) Rating Lowered to Strong Sell at Zacks Research

Revolve Group (NYSE:RVLV) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday, Zacks reports.

A number of other research firms have also weighed in on RVLV. Morgan Stanley set a $25.00 price objective on shares of Revolve Group in a research report on Wednesday. Roth Capital restated a “buy” rating and issued a $37.00 target price on shares of Revolve Group in a research note on Wednesday, August 5th. Stifel Nicolaus set a $31.00 target price on shares of Revolve Group in a research note on Wednesday. BTIG Research reaffirmed a “buy” rating and issued a $35.00 target price on shares of Revolve Group in a report on Wednesday, October 28th. Finally, Weiss Ratings upgraded shares of Revolve Group from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, September 24th. Eight investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $29.17.

Revolve Group Trading Down 4.8%

Revolve Group stock opened at $19.02 on Wednesday. Revolve Group has a twelve month low of $17.35 and a twelve month high of $31.68. The stock has a 50 day moving average of $21.53 and a two-hundred day moving average of $23.18. The stock has a market capitalization of $1.35 billion, a price-to-earnings ratio of 20.67, a PEG ratio of 2.66 and a beta of 1.62.

Revolve Group (NYSE:RVLV) last released its earnings results on Tuesday, November 3rd. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The company had revenue of $355.96 million during the quarter, compared to analyst estimates of $345.49 million. Revolve Group had a net margin of 4.81% and a return on equity of 12.34%. The company’s revenue for the quarter was up 20.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.29 EPS. Equities analysts predict that Revolve Group will post 0.76 earnings per share for the current year.

Institutional Investors Weigh In On Revolve Group

Several institutional investors have recently made changes to their positions in the stock. CenterBook Partners LP raised its holdings in Revolve Group by 115.7% during the third quarter. CenterBook Partners LP now owns 39,032 shares of the company’s stock worth $833,000 after purchasing an additional 20,940 shares during the last quarter. Integrity Alliance LLC. purchased a new stake in shares of Revolve Group in the third quarter valued at $455,000. State of Wyoming increased its stake in shares of Revolve Group by 44.1% during the 3rd quarter. State of Wyoming now owns 18,050 shares of the company’s stock valued at $385,000 after acquiring an additional 5,526 shares during the last quarter. Sterling Capital Management LLC increased its position in Revolve Group by 842.6% during the third quarter. Sterling Capital Management LLC now owns 1,395 shares of the company’s stock worth $30,000 after purchasing an additional 1,247 shares during the last quarter. Finally, Inspire Investing LLC raised its position in shares of Revolve Group by 1.9% in the 3rd quarter. Inspire Investing LLC now owns 29,901 shares of the company’s stock worth $638,000 after buying an additional 553 shares during the period. 67.60% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Revolve Group

Here are the key news stories impacting Revolve Group this week:

• Positive Sentiment: Q3 revenue grew 20.4% year over year to $355.96 million, beating consensus, with customer and order growth contributing to the increase. Zacks report on Q3 results
• Neutral Sentiment: Piper Sandler lowered its price target from $30 to $26 but retained an Overweight rating; TD Cowen cut its target from $31 to $25 while maintaining Buy. UBS also reduced its target, from $27 to $26, and kept its Neutral rating. The cuts temper expectations, though Piper and TD Cowen remain bullish. Piper Sandler price-target report
• Negative Sentiment: Q3 earnings per share of $0.20 missed the $0.22 consensus estimate and declined from $0.29 a year earlier. Rising operating and shipping costs are pressuring profitability; Revolve indicated Q4 gross margin of 52.3%–52.8%, with fuel surcharges adding to shipping expenses. These margin concerns help explain the cautious reaction despite revenue growth. Report on costs and margin pressure

About Revolve Group

Revolve Group, Inc operates a digital commerce platform focused on fashion and lifestyle products. Through its REVOLVE and FWRD platforms, the company offers women’s and men’s apparel, footwear, accessories, beauty products and other lifestyle merchandise from established and emerging brands. Its portfolio also includes proprietary and exclusive brands, including superdown and Song of Style.

The company primarily reaches customers through its e-commerce websites and mobile experiences, supported by influencer marketing, social media, content creation and data-driven merchandising.