UBS Group Issues Pessimistic Forecast for Revolve Group (NYSE:RVLV) Stock Price

Key Points

• UBS cut its Revolve Group price target from $27 to $26 while maintaining a Neutral rating; the new target implies about 30.5% upside from the cited share price.
• Shares fell 7.5% to $19.92 on Wednesday. Across analysts, the stock carries a Moderate Buy consensus rating and an average price target of $28.54.
• Quarterly revenue rose 20.4% year over year to $355.96 million, beating estimates, but earnings per share of $0.20 missed the $0.22 consensus and declined from $0.29 a year earlier.

Revolve Group (NYSE:RVLV - Get Free Report) had its price target reduced by UBS Group from $27.00 to $26.00 in a research note issued on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's target price would indicate a potential upside of 30.52% from the company's current price.

A number of other analysts have also recently weighed in on the stock. Morgan Stanley set a $25.00 price objective on shares of Revolve Group in a report on Wednesday. Wall Street Zen lowered shares of Revolve Group from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Raymond James Financial reduced their price objective on shares of Revolve Group from $28.00 to $25.00 and set an "outperform" rating for the company in a research note on Friday, October 16th. TD Cowen lowered their price target on Revolve Group from $31.00 to $25.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, Stifel Nicolaus set a $31.00 price target on shares of Revolve Group in a research note on Wednesday. Eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $28.54.

Revolve Group Trading Down 7.5%

RVLV traded down $1.61 during trading on Wednesday, hitting $19.92. 2,685,936 shares of the company's stock were exchanged, compared to its average volume of 994,979. Revolve Group has a 1 year low of $17.35 and a 1 year high of $31.68. The firm has a market cap of $1.42 billion, a P/E ratio of 19.72, a price-to-earnings-growth ratio of 2.78 and a beta of 1.62. The stock has a 50 day moving average price of $21.69 and a 200 day moving average price of $23.29.

Revolve Group (NYSE:RVLV - Get Free Report) last announced 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). The firm had revenue of $355.96 million during the quarter, compared to analysts' expectations of $345.49 million. Revolve Group had a net margin of 5.54% and a return on equity of 13.38%. Revolve Group's revenue for the quarter was up 20.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.29 earnings per share. Analysts forecast that Revolve Group will post 0.80 earnings per share for the current fiscal year.

Institutional Trading of Revolve Group

Several institutional investors and hedge funds have recently made changes to their positions in the business. Cooper Creek Partners Management LLC grew its position in shares of Revolve Group by 36.7% in the first quarter. Cooper Creek Partners Management LLC now owns 2,069,237 shares of the company's stock valued at $46,785,000 after purchasing an additional 555,153 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Revolve Group by 6.6% in the first quarter. Dimensional Fund Advisors LP now owns 904,319 shares of the company's stock valued at $20,444,000 after purchasing an additional 55,734 shares during the last quarter. Bank of America Corp DE lifted its holdings in shares of Revolve Group by 48.2% during the first quarter. Bank of America Corp DE now owns 624,985 shares of the company's stock worth $14,131,000 after purchasing an additional 203,216 shares during the period. Segall Bryant & Hamill LLC increased its position in Revolve Group by 63.0% during the 1st quarter. Segall Bryant & Hamill LLC now owns 513,621 shares of the company's stock valued at $11,613,000 after purchasing an additional 198,448 shares during the period. Finally, Squarepoint Ops LLC grew its stake in Revolve Group by 9.8% during the second quarter. Squarepoint Ops LLC now owns 182,224 shares of the company's stock worth $4,171,000 after purchasing an additional 16,228 shares during the period. Institutional investors own 67.60% of the company's stock.

Trending Headlines about Revolve Group

Here are the key news stories impacting Revolve Group this week:

• Positive Sentiment: Q3 revenue rose 20.4% year over year to $355.96 million, topping analyst expectations of $345.49 million. The company said sales grew at least 20% across REVOLVE and FWRD and in domestic and international markets. Revolve Group Q3 results
• Positive Sentiment: TD Cowen kept a Buy rating and Piper Sandler maintained Overweight, signaling continued analyst optimism. Their price targets were lowered to $25 and $26, respectively, but both remain above the cited share price. TD Cowen ratings Piper Sandler ratings
• Negative Sentiment: Q3 adjusted earnings were $0.20 per share, missing the $0.22 consensus and falling from $0.29 a year earlier. Coverage points to rising operating costs and margin pressure as reasons profits lagged sales growth. Rising costs and margin pressure
• Negative Sentiment: Revolve indicated Q4 gross margin of 52.3%–52.8%, with fuel surcharges pressuring shipping costs—an additional near-term profitability concern. Q4 margin outlook
• Negative Sentiment: Both TD Cowen and Piper Sandler lowered their price targets, tempering the bullish signal from their retained ratings.

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.

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