REV Group (NYSE:REVG) Sets New 52-Week High - Still a Buy?

Key Points

• REV Group, Inc. reached a new 52-week high of $63.60, closing at $63.66, with significant trading volume of 164,410 shares.
• Analysts have been optimistic about REV Group, with DA Davidson raising their price target to $68.00 and a mix of other ratings leading to an average target of $52.00.
• The company reported strong earnings with $0.79 earnings per share for the latest quarter, surpassing estimates and reflecting an 11.3% year-over-year revenue increase.

REV Group, Inc. (NYSE:REVG - Get Free Report)'s stock price hit a new 52-week high during trading on Wednesday . The company traded as high as $63.60 and last traded at $63.66, with a volume of 164410 shares changing hands. The stock had previously closed at $62.16.

Analysts Set New Price Targets

REVG has been the topic of a number of recent analyst reports. The Goldman Sachs Group increased their price objective on shares of REV Group from $26.00 to $30.00 and gave the stock a "sell" rating in a research report on Tuesday, May 27th. Zacks Research lowered shares of REV Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 2nd. DA Davidson increased their price objective on shares of REV Group from $55.00 to $68.00 and gave the company a "buy" rating in a research note on Thursday, September 4th. Robert W. Baird increased their price objective on shares of REV Group from $50.00 to $64.00 and gave the company an "outperform" rating in a research note on Thursday, September 4th. Finally, Morgan Stanley set a $64.00 target price on shares of REV Group in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, REV Group has an average rating of "Hold" and a consensus target price of $56.50.

REV Group Stock Down 3.2%

The company has a market capitalization of $3.02 billion, a price-to-earnings ratio of 29.17 and a beta of 1.15. The business's 50-day moving average is $52.02 and its 200-day moving average is $41.51. The company has a quick ratio of 0.53, a current ratio of 1.63 and a debt-to-equity ratio of 0.23.

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

REV Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Friday, September 26th will be issued a $0.06 dividend. The ex-dividend date of this dividend is Friday, September 26th. This represents a $0.24 dividend on an annualized basis and a yield of 0.4%. REV Group's payout ratio is presently 11.32%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in REVG. High Ground Investment Management LLP purchased a new stake in shares of REV Group during the first quarter worth about $59,288,000. Aberdeen Group plc purchased a new stake in shares of REV Group during the first quarter worth about $25,796,000. Neuberger Berman Group LLC increased its stake in shares of REV Group by 338.2% during the second quarter. Neuberger Berman Group LLC now owns 970,595 shares of the company's stock worth $46,191,000 after purchasing an additional 749,113 shares in the last quarter. American Century Companies Inc. increased its stake in shares of REV Group by 345.5% during the first quarter. American Century Companies Inc. now owns 643,854 shares of the company's stock worth $20,346,000 after purchasing an additional 499,328 shares in the last quarter. Finally, Bragg Financial Advisors Inc purchased a new stake in shares of REV Group during the first quarter worth about $11,639,000.

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.