Revolve Group (NYSE:RVLV) Shares Gap Up Following Strong Earnings

Revolve Group, Inc. (NYSE:RVLV) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $17.57, but opened at $20.99. Revolve Group shares last traded at $22.37, with a volume of 465,772 shares changing hands.

The company reported $0.21 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.09. Revolve Group had a net margin of 2.34% and a return on equity of 6.30%. The firm had revenue of $282.50 million for the quarter, compared to analyst estimates of $277.06 million. During the same period in the previous year, the firm posted $0.10 EPS. The company’s revenue for the quarter was up 3.2% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RVLV. Roth Mkm boosted their target price on shares of Revolve Group from $21.00 to $26.00 and gave the stock a “buy” rating in a report on Wednesday, May 8th. Barclays reduced their price objective on shares of Revolve Group from $15.00 to $14.00 and set an “underweight” rating on the stock in a research note on Thursday, July 18th. Needham & Company LLC reaffirmed a “buy” rating and issued a $25.00 price objective on shares of Revolve Group in a research note on Friday, May 17th. BMO Capital Markets upped their price objective on shares of Revolve Group from $13.00 to $15.00 and gave the company a “market perform” rating in a research note on Wednesday, May 8th. Finally, Robert W. Baird boosted their target price on shares of Revolve Group from $19.00 to $23.00 and gave the company a “neutral” rating in a research report on Wednesday, May 8th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $20.53.

Institutional Trading of Revolve Group

Several institutional investors have recently made changes to their positions in RVLV. BNP Paribas Financial Markets grew its position in Revolve Group by 80.9% during the fourth quarter. BNP Paribas Financial Markets now owns 176,222 shares of the company’s stock valued at $2,922,000 after buying an additional 78,828 shares during the period. Stephens Investment Management Group LLC grew its position in Revolve Group by 51.3% during the fourth quarter. Stephens Investment Management Group LLC now owns 678,515 shares of the company’s stock valued at $11,250,000 after buying an additional 229,964 shares during the period. Madison Asset Management LLC grew its position in Revolve Group by 40.4% during the fourth quarter. Madison Asset Management LLC now owns 197,982 shares of the company’s stock valued at $3,283,000 after buying an additional 56,976 shares during the period. Capstone Investment Advisors LLC bought a new position in Revolve Group during the first quarter worth about $1,591,000. Finally, Susquehanna Fundamental Investments LLC bought a new position in Revolve Group during the first quarter worth about $1,432,000. Institutional investors own 67.60% of the company’s stock.

Revolve Group Stock Up 27.2 %

The stock has a market cap of $1.58 billion, a P/E ratio of 63.53, a price-to-earnings-growth ratio of 2.55 and a beta of 2.09. The business’s 50-day simple moving average is $17.14 and its two-hundred day simple moving average is $18.43.

About Revolve Group

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.