Revolve Group (NYSE:RVLV) Shares Down 10.8% - Here's Why

Key Points

• Revolve Group's stock dropped by 10.8%, closing at $18.47, following a trading session with increased volume of 1,493,741 shares.
• Several analysts have adjusted their price targets for Revolve Group, with ratings ranging from "buy" to "neutral," and a consensus target price of $26.88.
• The company's recent earnings report showed a quarterly revenue increase of 9.3% year-over-year, with earnings per share surpassing estimates at $0.14.

Shares of Revolve Group, Inc. (NYSE:RVLV - Get Free Report) dropped 10.8% during mid-day trading on Wednesday . The stock traded as low as $18.31 and last traded at $18.47. Approximately 1,493,741 shares changed hands during mid-day trading, an increase of 7% from the average daily volume of 1,401,443 shares. The stock had previously closed at $20.70.

Analyst Ratings Changes

Several brokerages have weighed in on RVLV. Robert W. Baird boosted their price objective on Revolve Group from $23.00 to $25.00 and gave the stock a "neutral" rating in a research note on Friday, June 6th. Roth Capital reissued a "buy" rating and set a $24.00 price objective (up from $19.00) on shares of Revolve Group in a research note on Tuesday, August 5th. Cowen reissued a "buy" rating on shares of Revolve Group in a research note on Friday, June 6th. Raymond James Financial boosted their price objective on Revolve Group from $21.00 to $25.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 22nd. Finally, Piper Sandler boosted their price objective on Revolve Group from $22.00 to $25.00 and gave the stock an "overweight" rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $27.40.

Revolve Group Price Performance

The stock has a market cap of $1.40 billion, a PE ratio of 31.63, a price-to-earnings-growth ratio of 2.15 and a beta of 1.98. The business has a fifty day moving average of $21.03 and a 200-day moving average of $22.61.

Revolve Group (NYSE:RVLV - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.02. The firm had revenue of $308.97 million during the quarter, compared to analyst estimates of $297.91 million. Revolve Group had a return on equity of 10.17% and a net margin of 3.83%. Revolve Group's quarterly revenue was up 9.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.21 earnings per share. As a group, equities research analysts predict that Revolve Group, Inc. will post 0.6 EPS for the current year.

Hedge Funds Weigh In On Revolve Group

A number of large investors have recently bought and sold shares of RVLV. Summit Securities Group LLC bought a new position in Revolve Group in the first quarter worth approximately $25,000. Generali Investments Towarzystwo Funduszy Inwestycyjnych bought a new position in Revolve Group in the second quarter worth approximately $60,000. CWM LLC raised its stake in Revolve Group by 40.4% in the first quarter. CWM LLC now owns 2,905 shares of the company's stock worth $62,000 after buying an additional 836 shares in the last quarter. Castlekeep Investment Advisors LLC bought a new position in Revolve Group in the fourth quarter worth approximately $65,000. Finally, Logan Capital Management Inc. raised its stake in Revolve Group by 35.5% in the second quarter. Logan Capital Management Inc. now owns 5,579 shares of the company's stock worth $112,000 after buying an additional 1,463 shares in the last quarter. Institutional investors own 67.60% of the company's stock.

Revolve Group Company Profile

Revolve Group, Inc operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. The company operates in two segments, REVOLVE and FWRD. It operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands.