Revolve group sees $6.23 million in stock sales by major shareholder

CERRITOS, Calif.—MMMK Development, Inc., a significant shareholder in Revolve Group , Inc. (NYSE:RVLV), recently executed a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission. Over the course of three days, the company sold a substantial amount of Class A common stock, amounting to a total value of approximately $6.23 million. According to InvestingPro data, RVLV's stock has shown significant momentum with an 81.66% return over the past year, though current analysis suggests the stock is trading above its Fair Value.

The transactions, executed under a Rule 10b5-1 trading plan, took place between February 12 and February 14, 2025. On February 12, MMMK Development sold 18,233 shares at an average price of $29.38, followed by a larger sale of 47,489 shares at an average price of $30.38. The following day, the firm sold an additional 52,893 shares at an average price of $31.53 and 16,028 shares at $31.88. The final sale on February 14 involved 67,057 shares at an average price of $30.91, with a small additional sale of 61 shares at $31.54. With a beta of 2.17, InvestingPro analysis indicates RVLV exhibits higher volatility than the broader market.

These sales were part of a pre-arranged trading plan that allows insiders to sell shares at predetermined times, providing a measure of protection against accusations of insider trading. The transactions resulted in MMMK Development reducing its direct ownership of Revolve Group's Class A common stock to zero shares as of February 14, 2025. With the company's next earnings report due in 5 days, InvestingPro subscribers can access comprehensive analysis and 12 additional ProTips to better understand RVLV's financial position and market outlook.

In other recent news, Revolve Group has been the subject of several analyst reports. KeyBanc Capital Markets upgraded Revolve's stock rating from Sector Weight to Overweight, setting a price target of $37.00, due to increased confidence in the company's prospects and anticipation of its fourth-quarter results. KeyBanc's outlook is based on Revolve's return to top-line growth and margin expansion, driven by an expanding consumer base and improvements in average order value.

Simultaneously, Stifel analysts maintained a Buy rating on Revolve, with a price target of $41.00. The firm increased its estimates for Revolve's fourth-quarter revenue to $286.1 million and adjusted EBITDA to $10.7 million, anticipating a top and bottom line beat. Stifel credits Revolve's internal efforts to improve product returns and manage expenses for the positive expectations.

Earlier, KeyBanc reiterated a Sector Weight rating for Revolve post Black Friday, noting an increase in promotional activity. The firm highlighted that approximately 61% of items on the Revolve platform were discounted as of December 2, 2024. Despite the deep markdowns, the total SKU count on Revolve's website has grown by approximately 9% year-to-date.

These recent developments reflect analysts' belief in Revolve's potential for continued growth and profitability, with both KeyBanc and Stifel expressing optimism about the company's future performance.

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