Zacks Research Downgrades REV Group (NYSE:REVG) to Hold

Key Points

• Zacks Research has downgraded REV Group from a "strong-buy" rating to a "hold" rating, indicating a shift in analyst sentiment toward the company's stock.
• Despite the downgrade, the average target price for REV Group shares was raised to $42.25, with two analysts rating it as a "Buy" and two as "Hold".
• In its latest earnings report, REV Group reported an EPS of $0.79, surpassing consensus estimates, and showed a year-over-year revenue growth of 11.3%.

REV Group (NYSE:REVG - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday, September 2nd,Zacks.com reports.

Several other research firms have also recently weighed in on REVG. DA Davidson lifted their price target on REV Group from $51.00 to $55.00 and gave the stock a "buy" rating in a report on Tuesday, July 22nd. Morgan Stanley upgraded REV Group from an "underweight" rating to an "equal weight" rating and raised their price objective for the stock from $33.00 to $46.00 in a research note on Wednesday, June 18th. Wall Street Zen upgraded REV Group from a "buy" rating to a "strong-buy" rating in a research note on Friday, June 6th. Finally, The Goldman Sachs Group raised their price objective on REV Group from $26.00 to $30.00 and gave the stock a "sell" rating in a research note on Tuesday, May 27th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, REV Group has an average rating of "Hold" and an average target price of $52.00.

REV Group Stock Performance

NYSE:REVG traded down $0.34 during mid-day trading on Tuesday, hitting $61.85. 194,608 shares of the stock were exchanged, compared to its average volume of 729,106. The stock has a market capitalization of $3.02 billion, a price-to-earnings ratio of 29.17 and a beta of 1.15. The firm's 50-day simple moving average is $50.97 and its 200 day simple moving average is $40.76. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.53 and a current ratio of 1.63. REV Group has a fifty-two week low of $25.15 and a fifty-two week high of $63.38.

REV Group (NYSE:REVG - Get Free Report) last released its quarterly earnings results on Wednesday, September 3rd. The company reported $0.79 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.16. The business had revenue of $644.90 million during the quarter, compared to analysts' expectations of $613.24 million. REV Group had a return on equity of 27.25% and a net margin of 4.51%.The firm's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period last year, the firm posted $0.48 EPS. REV Group has set its FY 2025 guidance at EPS. As a group, equities analysts anticipate that REV Group will post 2.12 EPS for the current fiscal year.

Hedge Funds Weigh In On REV Group

Hedge funds and other institutional investors have recently modified their holdings of the business. KBC Group NV bought a new position in shares of REV Group in the 1st quarter valued at $33,000. Canada Pension Plan Investment Board bought a new position in shares of REV Group in the 2nd quarter valued at $38,000. McIlrath & Eck LLC increased its stake in shares of REV Group by 31.5% in the 4th quarter. McIlrath & Eck LLC now owns 1,435 shares of the company's stock valued at $46,000 after purchasing an additional 344 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of REV Group in the 1st quarter valued at $54,000. Finally, AlphaQuest LLC increased its stake in shares of REV Group by 5,215.4% in the 2nd quarter. AlphaQuest LLC now owns 1,382 shares of the company's stock valued at $66,000 after purchasing an additional 1,356 shares during the last quarter.

About REV Group

REV Group, Inc, together with its subsidiaries, designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, Spartan Fire Chassis, and Ladder Tower brand names; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brand names.