REV Group (NYSE:REVG) Sets New 12-Month High on Earnings Beat

Key Points

• REV Group shares reached a new 52-week high of $63.38 after reporting earnings of $0.79 per share, exceeding analyst expectations of $0.63.
• The company announced a quarterly dividend of $0.06, which reflects an annualized yield of 0.4% and a payout ratio of 12.77%.
• Analysts have varied ratings on REV Group, with Morgan Stanley upgrading the stock to "equal weight" and raising its price target significantly from $33.00 to $46.00.

Shares of REV Group, Inc. (NYSE:REVG - Get Free Report) reached a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $63.38 and last traded at $57.24, with a volume of 460504 shares traded. The stock had previously closed at $51.80.

The company reported $0.79 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.16. The company had revenue of $644.90 million during the quarter, compared to analyst estimates of $613.24 million. REV Group had a return on equity of 23.99% and a net margin of 4.16%.The firm's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.48 earnings per share. REV Group has set its FY 2025 guidance at EPS.

REV Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 11th. Investors of record on Friday, June 27th were given a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 0.4%. The ex-dividend date was Friday, June 27th. REV Group's dividend payout ratio is presently 12.77%.

Analysts Set New Price Targets

Several brokerages recently weighed in on REVG. Morgan Stanley upgraded REV Group from an "underweight" rating to an "equal weight" rating and increased their price objective for the stock from $33.00 to $46.00 in a research report on Wednesday, June 18th. The Goldman Sachs Group upped their price target on REV Group from $26.00 to $30.00 and gave the stock a "sell" rating in a research note on Tuesday, May 27th. Wall Street Zen upgraded REV Group from a "buy" rating to a "strong-buy" rating in a research note on Friday, June 6th. Finally, DA Davidson upped their price target on REV Group from $51.00 to $55.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $42.25.

Insider Activity

In other news, CEO Jr. Mark A. Skonieczny sold 92,601 shares of the stock in a transaction on Friday, June 6th. The stock was sold at an average price of $43.83, for a total value of $4,058,701.83. Following the sale, the chief executive officer directly owned 516,446 shares in the company, valued at approximately $22,635,828.18. This trade represents a 15.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.70% of the company's stock.

Institutional Trading of REV Group

Hedge funds and other institutional investors have recently bought and sold shares of the business. Millennium Management LLC acquired a new stake in REV Group in the fourth quarter valued at $513,000. SG Americas Securities LLC raised its stake in REV Group by 300.6% in the first quarter. SG Americas Securities LLC now owns 15,181 shares of the company's stock valued at $480,000 after buying an additional 11,391 shares in the last quarter. Speece Thorson Capital Group Inc. acquired a new stake in REV Group in the first quarter valued at $4,842,000. American Century Companies Inc. raised its stake in REV Group by 345.5% in the first quarter. American Century Companies Inc. now owns 643,854 shares of the company's stock valued at $20,346,000 after buying an additional 499,328 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its stake in REV Group by 32.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 351,902 shares of the company's stock valued at $11,120,000 after buying an additional 86,703 shares in the last quarter.

REV Group Stock Performance

The stock has a 50 day simple moving average of $49.77 and a two-hundred day simple moving average of $39.92. The company has a market capitalization of $2.72 billion, a price-to-earnings ratio of 29.56 and a beta of 1.15. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.66 and a quick ratio of 0.53.

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.

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