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

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

Other research analysts have also issued reports about the company. Roth Capital reissued a “buy” rating and issued a $37.00 price objective on shares of Revolve Group in a research report on Wednesday, August 5th. Morgan Stanley set a $25.00 target price on Revolve Group in a research report on Wednesday. UBS Group lowered their target price on Revolve Group from $27.00 to $26.00 and set a “neutral” rating for the company in a research note on Wednesday. TD Cowen lowered their target price on Revolve Group from $31.00 to $25.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Wall Street Zen downgraded Revolve Group from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Eight analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $29.17.

Revolve Group Stock Down 4.8%

Revolve Group stock opened at $19.02 on Wednesday. The firm has a fifty day moving average of $21.53 and a 200-day moving average of $23.18. Revolve Group has a 52-week low of $17.35 and a 52-week high of $31.68. The firm has a market capitalization of $1.35 billion, a P/E ratio of 20.67, a PEG ratio of 2.66 and a beta of 1.62.

Revolve Group (NYSE:RVLV) last posted its earnings results 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). Revolve Group had a net margin of 4.81% and a return on equity of 12.34%. The business had revenue of $355.96 million for the quarter, compared to analyst estimates of $345.49 million. During the same quarter in the previous year, the firm posted $0.29 EPS. The business’s revenue was up 20.4% compared to the same quarter last year. On average, research analysts expect that Revolve Group will post 0.76 EPS for the current fiscal year.

Hedge Funds Weigh In On Revolve Group

A number of institutional investors have recently made changes to their positions in RVLV. Cooper Creek Partners Management LLC boosted its stake in shares of Revolve Group by 36.7% during the 1st quarter. Cooper Creek Partners Management LLC now owns 2,069,237 shares of the company’s stock valued at $46,785,000 after buying an additional 555,153 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Revolve Group by 48.2% in the first quarter. Bank of America Corp DE now owns 624,985 shares of the company’s stock worth $14,131,000 after buying an additional 203,216 shares during the last quarter. Segall Bryant & Hamill LLC increased its stake in shares of Revolve Group by 63.0% in the first quarter. Segall Bryant & Hamill LLC now owns 513,621 shares of the company’s stock worth $11,613,000 after buying an additional 198,448 shares during the last quarter. Madison Asset Management LLC bought a new stake in shares of Revolve Group in the second quarter worth $2,946,000. Finally, Walleye Capital LLC acquired a new stake in Revolve Group in the first quarter valued at $2,871,000. 67.60% of the stock is owned by institutional investors and hedge funds.

Key Revolve Group News

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.