Revolve Group Inc. (RVLV) Volatility Spurs A Quest For Clarity


The Vanguard Group, Inc. recently announced the acquisition of new stake in Revolve Group Inc. (NYSE:RVLV). The institutional investor has increased its shareholding in the Consumer Cyclical company by 3.71% to 1.19 million shares with purchase of 42708.0 shares. This fresh investment now brings its stake to 7.56% valued currently at $17.73 million. In addition, Wells Capital Management, Inc. raised its holdings by 0.82 million to 0.94 million shares. And Citadel Advisors LLC has lifted its position by 926.65% or 0.46 million shares – to 0.51 million shares.

With over 0.49 million Revolve Group Inc. (RVLV) shares trading Tuesday and a closing price of $16.00 on the day, the dollar volume was approximately $7.9 million. The shares have shown a positive weekly performance of 0.19% and its price on 07/21/20 gained nearly 1.27%. Currently, there are 69.32M common shares owned by the public and among those 15.61M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for RVLV have a consensus price objective of $16.17. The analysts have set the share’s price value over the next 12 months at a high of $21.00 and a low of $10.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Revolve Group Inc. stock is 2.30 for the next 12 months. The average price target is 0.93% above its last price level and an upside to the estimated low will see the stock lose -60.0% over that period. But an upside of 23.81% will see the stock hit the forecast high price target while mean target price for the stock is $17.00.

Insiders at the company have transacted a total of 7 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 7 of these insider trades were purchases, accounting for 206,501 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

The top 3 mutual fund holders in Revolve Group Inc. are ClearBridge Small Cap Growth Fund, Amplify Online Retail ETF, and Fidelity Small Cap Growth Fund. ClearBridge Small Cap Growth Fund owns 1.32 million shares of the company’s stock, all valued at over $19.59 million. The company sold 16247.0 shares recently to bring their total holdings to about 8.36% of the shares outstanding. Fidelity Small Cap Growth Fund bought 0.38 million shares to bring its total holdings to over 1.09 million shares at a value of $16.26 million. Fidelity Small Cap Growth Fund now owns shares totaling to 6.93% of the shares outstanding.

Shares of Revolve Group Inc. (NYSE: RVLV) opened at $15.78, down -$0.02 from a prior closing price of $15.80. However, the script later closed the day at $16.00, up 1.27%. The company’s stock has a 5-day price change of 0.19% and 41.70% over the past three months. RVLV shares are trading -13.94% year to date (YTD), with the 12-month market performance down to -54.06% lower. It has a 12-month low price of $7.17 and touched a high of $35.94 over the same period. Currently, 0.49 million shares have been traded, compared to an average intraday trading volume of 1.14 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.73%, 3.72%, and 0.75% respectively.

Institutional ownership of Revolve Group Inc. (NYSE: RVLV) shares accounts for 81.20% of the company’s 69.32M shares outstanding. Mutual fund holders own 19.84%, while other institutional holders and individual stakeholders account for 56.83% and 1.28% respectively.

It has a market capitalization of $1.10B. The earnings-per-share (ttm) stands at -$0.10. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.72% over the week and 6.53% over the month.

Analysts forecast that Revolve Group Inc. (RVLV) will achieve an EPS of $0.02 for the current quarter, $0.06 for the next quarter and $0.51 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.04 while analysts give the company a high EPS estimate of $0.09. Comparatively, EPS for the current quarter was $0.18 a year ago. Earnings per share for the fiscal year are expected to decrease by -120.00%, and 139.72% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Revolve Group Inc. (RVLV) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 7 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the RVLV, a number of firms have released research notes about the stock. B. Riley FBR stated their Buy rating for the stock in a research note on May 14, 2020, with the firm’s price target at $13-$17. Jefferies coverage for the Revolve Group Inc. (RVLV) stock in a research note released on March 19, 2020 offered a Hold rating with a price target of $9. Nomura was of a view on March 18, 2020 that the stock is Neutral, while Morgan Stanley gave the stock Equal-Weight rating on February 27, 2020, issuing a price target of $24- $20. BMO Capital Markets on their part issued Market Perform rating on February 04, 2020.


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