Revolve Group (NYSE:RVLV) Stock Rating Lowered by Zacks Research

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

RVLV has been the topic of several other research reports. Raymond James Financial reduced their target price on shares of Revolve Group from $28.00 to $25.00 and set an “outperform” rating on the stock in a research note on Friday, October 16th. BTIG Research reissued a “buy” rating and set a $35.00 price target on shares of Revolve Group in a research note on Wednesday, October 28th. Stifel Nicolaus set a $31.00 price objective on shares of Revolve Group in a report on Wednesday. Roth Capital restated a “buy” rating and issued a $37.00 price objective on shares of Revolve Group in a report on Wednesday, August 5th. Finally, Wall Street Zen cut shares of Revolve Group from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Eight investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Revolve Group currently has a consensus rating of “Moderate Buy” and an average price target of $29.17.

Revolve Group Stock Down 4.8%

Revolve Group stock opened at $19.02 on Wednesday. The business’s 50-day simple moving average is $21.53 and its 200 day simple moving average is $23.18. The stock has a market cap of $1.35 billion, a price-to-earnings ratio of 20.67, a P/E/G ratio of 2.66 and a beta of 1.62. Revolve Group has a 12-month low of $17.35 and a 12-month high of $31.68.

Revolve Group (NYSE:RVLV) last announced its quarterly earnings data on Tuesday, November 3rd. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm had revenue of $355.96 million for the quarter, compared to the consensus estimate of $345.49 million. Revolve Group had a return on equity of 12.34% and a net margin of 4.81%. The business’s revenue for the quarter was up 20.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.29 earnings per share. As a group, sell-side analysts expect that Revolve Group will post 0.76 EPS for the current year.

Institutional Trading of Revolve Group

Hedge funds have recently modified their holdings of the company. Sterling Capital Management LLC boosted its stake in Revolve Group by 842.6% during the 3rd quarter. Sterling Capital Management LLC now owns 1,395 shares of the company’s stock worth $30,000 after acquiring an additional 1,247 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in Revolve Group in the second quarter valued at approximately $46,000. Elevation Point Wealth Partners LLC bought a new stake in Revolve Group in the first quarter valued at approximately $218,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Revolve Group in the second quarter valued at approximately $259,000. Finally, OMERS ADMINISTRATION Corp bought a new stake in Revolve Group in the first quarter valued at approximately $312,000. 67.60% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting 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

Revolve Group Company Profile

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.