Revolve Group, Inc. (NYSE:RVLV) has received a consensus rating of “Moderate Buy” from fifteen ratings firms currently covering the stock, according to Marketbeat. This positive outlook reflects a mix of recommendations, with seven analysts advocating a hold position and eight issuing buy ratings.
Analysts have recently provided insights on the stock’s performance and future expectations. The average twelve-month target price stands at an impressive $25.92. Among the recent updates, Zacks Research downgraded the stock from a “strong-buy” to a “hold” on October 6, 2023. Conversely, UBS Group raised its price target from $22.00 to $23.00, giving the company a “neutral” rating on October 21, 2023.
Further analysis from Piper Sandler increased their target price from $22.00 to $25.00, rating the stock as “overweight.” Meanwhile, Wall Street Zen upgraded Revolve Group from a “hold” to a “buy” rating, indicating a growing confidence in the company’s future. Weiss Ratings maintained a “hold (c)” rating in a note on October 8, 2023.
Recent Earnings Performance
On November 4, 2023, Revolve Group announced quarterly earnings that exceeded expectations. The company reported earnings per share (EPS) of $0.24, surpassing analysts’ consensus estimate of $0.11 by $0.13. The firm achieved revenue of $295.63 million during the quarter, although this fell short of analysts’ predictions of $297.36 million.
The company experienced a net margin of 4.64% and a return on equity of 11.26%. In comparison to the same quarter last year, revenue grew by 4.4% from $283.56 million. Analysts anticipate that Revolve Group will post $0.60 EPS for the current year, reflecting cautious optimism in the market.
Institutional Interest and Ownership
Recent activity among institutional investors underscores the growing interest in Revolve Group. Vanguard Group Inc. increased its stake by 2.6%, now holding 3,930,620 shares valued at $84.47 million after acquiring an additional 98,413 shares. Fuller & Thaler Asset Management Inc. boosted its holdings by 27.3%, now owning 2,363,896 shares worth $50.80 million.
In the third quarter, William Blair Investment Management LLC raised its holdings by 3.7%, now possessing 1,841,578 shares valued at $39.23 million. Additionally, Balyasny Asset Management L.P. expanded its position in the same quarter by 18.4%, acquiring 1,196,171 shares valued at $25.48 million. Collectively, institutional investors and hedge funds hold 67.60% of Revolve Group’s stock.
Revolve Group, Inc. serves as an online fashion retailer targeting millennial and Generation Z consumers, both in the United States and internationally. The company operates two segments, REVOLVE and FWRD, creating a platform that connects consumers with global fashion influencers and a range of brands.
The overall outlook for Revolve Group remains cautiously optimistic as the company continues to demonstrate growth and attract institutional investment.
