A Look at Revolve Group Inc. (RVLV) Shares in the Recent Past Indicates Growth

Revolve Group Inc. (NYSE: RVLV) stock jumped 8.16% on Friday to $25.04 against a previous-day closing price of $23.15. With 1.71 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.2 million shares. During the session, the Internet Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $25.16 whereas the lowest price it dropped to was $23.57. The 52-week range on RVLV shows that it touched its highest point at $63.92 and its lowest point at $20.17 during that stretch. It currently has a 1-year price target of $26.31. Beta for the stock currently stands at 2.09.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RVLV was up-trending over the past week, with a rise of 5.30%, but this was up by 3.86% over a month. Three-month performance surged to 18.67% while six-month performance fell -15.92%. The stock lost -42.24% in the past year, while it has gained 12.49% so far this year. A look at the trailing 12-month EPS for RVLV yields 1.07 with Next year EPS estimates of 0.84. For the next quarter, that number is 0.10. This implies an EPS growth rate of 69.90% for this year and 8.19% for next year. EPS is expected to decline by -1.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 107.10%.

Float and Shares Shorts:

At present, 73.33 million RVLV shares are outstanding with a float of 40.48 million shares on hand for trading. On Oct 13, 2022, short shares totaled 12.69 million, which was 17.31% higher than short shares on Sep 14, 2022. In addition to Mr. Michael Karanikolas as the firm’s Co-Founder, Co-CEO & Chairman, Mr. Michael Mente serves as its Co-Founder, Co-CEO & Director.

Institutional Ownership:

Through their ownership of 129.74% of RVLV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 68.01% of RVLV, in contrast to 61.78% held by mutual funds. Shares owned by individuals account for 0.55%. As the largest shareholder in RVLV with 17.55% of the stake, Kayne Anderson Rudnick Investment holds 7,148,406 shares worth 7,148,406. A second-largest stockholder of RVLV, Fidelity Management & Research Co, holds 6,108,938 shares, controlling over 15.00% of the firm’s shares. William Blair Investment Manageme is the third largest shareholder in RVLV, holding 5,020,700 shares or 12.32% stake. With a 12.96% stake in RVLV, the Virtus KAR Small Cap Growth Fund is the largest stakeholder. A total of 5,278,701 shares are owned by the mutual fund manager. The Fidelity Growth Company Fund, which owns about 4.65% of RVLV stock, is the second-largest Mutual Fund holder. It holds 1,893,696 shares valued at 42.15 million. Vanguard Total Stock Market Index holds 2.99% of the stake in RVLV, owning 1,219,646 shares worth 27.15 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RVLV since 19 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RVLV analysts setting a high price target of $33.00 and a low target of $18.00, the average target price over the next 12 months is $26.31. Based on these targets, RVLV could surge 31.79% to reach the target high and fall by -28.12% to reach the target low. Reaching the average price target will result in a growth of 5.07% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RVLV will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of $0.81 being high and $0.74 being low. For RVLV, this leads to a yearly average estimate of $0.78. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Revolve Group Inc. surprised analysts by $0.07 when it reported $0.16 EPS against a consensus estimate of $0.09. The surprise factor in the prior quarter was -$0.09. Based on analyst estimates, the high estimate for the next quarter is $0.14 and the low estimate is $0.06. The average estimate for the next quarter is thus $0.10.

Summary of Insider Activity:

Insiders traded RVLV stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 5 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 15,188 while 2,457 shares were sold.

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