Revlon, Inc. (REV) Bonds Trading 7.4% Lower Earnings
An issue of Revlon, Inc. (NYSE:REV) debt fell 7.4% against its face value during trading on Monday after the company announced weaker than expected quarterly earnings. The high-yield debt issue has a 6.25% coupon and will mature on August 1, 2024. The debt is now trading at $66.50 and was trading at $74.31 last week. Price moves in a company’s debt in credit markets often anticipate parallel moves in its share price. The company reported ($0.38) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.51). The company had revenue of $666.50 million for the quarter, compared to analyst estimates of $604.50 million. Revlon had a negative net margin of 5.27% and a negative return on equity of 3.09%.
A number of brokerages have recently weighed in on REV. Jefferies Group LLC began coverage on Revlon in a research note on Wednesday, September 13th. They issued a “hold” rating and a $16.00 target price on the stock. ValuEngine downgraded Revlon from a “hold” rating to a “sell” rating in a research note on Friday, September 15th. Finally, BidaskClub downgraded Revlon from a “sell” rating to a “strong sell” rating in a research note on Monday, July 24th.
In other Revlon news, Director Ronald O. Perelman bought 419,127 shares of the business’s stock in a transaction dated Tuesday, August 8th. The shares were purchased at an average price of $18.55 per share, for a total transaction of $7,774,805.85. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Ronald O. Perelman bought 625,151 shares of the business’s stock in a transaction dated Thursday, September 21st. The stock was acquired at an average price of $17.36 per share, for a total transaction of $10,852,621.36. The disclosure for this purchase can be found here. Insiders bought a total of 1,698,314 shares of company stock worth $31,129,986 in the last 90 days. Company insiders own 78.00% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Mittleman Brothers LLC boosted its stake in shares of Revlon by 1.0% in the 2nd quarter. Mittleman Brothers LLC now owns 2,304,282 shares of the company’s stock worth $54,611,000 after buying an additional 22,111 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Revlon by 3.3% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,049,676 shares of the company’s stock worth $24,878,000 after buying an additional 33,969 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Revlon by 4.1% in the 2nd quarter. Vanguard Group Inc. now owns 1,002,936 shares of the company’s stock worth $23,770,000 after buying an additional 39,526 shares during the last quarter. State Street Corp raised its holdings in shares of Revlon by 3.6% in the 2nd quarter. State Street Corp now owns 237,381 shares of the company’s stock worth $5,626,000 after purchasing an additional 8,268 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Revlon by 1,885.2% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 162,426 shares of the company’s stock worth $3,849,000 after purchasing an additional 154,244 shares during the period. Hedge funds and other institutional investors own 14.04% of the company’s stock.
The company has a debt-to-equity ratio of -3.78, a quick ratio of 0.67 and a current ratio of 1.25.
Revlon Company Profile
Revlon, Inc manufactures, markets and sells around the world a range of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, as well as beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products.
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