Wall Street Analysts Upgrade Revolve Group Stock Ratings

Analysts at Wall Street Zen have upgraded their rating for Revolve Group (NYSE:RVLV) from “hold” to “buy,” reflecting growing confidence in the online fashion retailer. This change, announced on Monday, follows a series of evaluations from various financial institutions regarding the company’s stock performance.

Several other analysts have also weighed in on Revolve Group. Notably, Zacks Research downgraded its rating from “strong-buy” to “hold” on October 6, 2023. Meanwhile, Barclays raised its target price for Revolve shares from $23.00 to $24.00 and assigned an “equal weight” rating on November 5, 2023. Morgan Stanley also increased its price objective, moving it from $24.00 to $26.00, while reaffirming an “equal weight” rating on the same date. BTIG Research maintained a “buy” rating with an ambitious target price of $30.00.

Across the board, nine investment analysts have issued a “buy” rating for the stock, while seven have opted for a “hold.” According to data from MarketBeat.com, Revolve Group currently holds a consensus rating of “Moderate Buy” and a consensus price target of $26.21.

Revolve Group’s Stock Performance and Earnings Report

On Monday, shares of Revolve Group opened at $24.17. The company has a 50-day simple moving average of $22.08 and a 200-day simple moving average of $21.63. Over the past year, the stock has seen a low of $16.80 and a high of $39.58. With a market capitalization of $1.72 billion, Revolve Group has a price-to-earnings (P/E) ratio of 31.80 and a P/E growth (P/E/G) ratio of 2.68.

Revolve Group released its quarterly earnings data on November 4, 2023, reporting earnings per share (EPS) of $0.24, surpassing analysts’ expectations of $0.11 by $0.13. The firm generated revenue of $295.63 million, slightly below the expected $297.36 million. The company experienced a year-over-year revenue increase of 4.4% compared to the same quarter last year, when it earned $0.15 per share. Analysts predict an average EPS of 0.6 for the current fiscal year.

Institutional Investment Trends

Recent activity from institutional investors indicates a strong interest in Revolve Group. Federated Hermes Inc. increased its holdings by 3.3% during the first quarter, now owning 245,091 shares valued at $5,267,000. Vanguard Group Inc. also expanded its stake by 2.6%, acquiring an additional 98,413 shares, bringing its total to 3,930,620 shares worth $84,469,000.

Connor Clark & Lunn Investment Management Ltd. raised its position by 4.5%, owning 84,294 shares valued at $1,811,000. Aigen Investment Management LP and Nuveen LLC also entered new stakes in the company during the same period, worth $373,000 and $2,154,000, respectively. Currently, institutional investors and hedge funds collectively own 67.60% of Revolve Group’s stock.

Revolve Group, Inc. operates as an online fashion retailer catering primarily to millennial and Generation Z consumers. The company is divided into two segments, REVOLVE and FWRD, and serves as a platform connecting consumers with global fashion influencers as well as emerging and established brands.