Michael Mente, Co-Chief Executive Officer of Revolve Group , Inc. (NYSE:RVLV), a $2.1 billion market cap online fashion retailer, has made significant stock transactions recently. According to a recent filing, Mente sold shares of the company's Class A common stock over several days in January. The sales come as InvestingPro data shows the stock has experienced high volatility, with a -13.2% decline in the past week.
On January 7, Mente sold a total of 78,205 shares, with prices ranging from $30.18 to $31.32 per share. The transactions resulted in proceeds of approximately $2.39 million. The following day, January 8, he sold an additional 45,987 shares at prices between $29.82 and $30.89, generating about $1.39 million. Finally, on January 10, Mente sold 69,605 shares, with prices ranging from $29.18 to $30.73, for approximately $2.08 million.
These sales were executed under a Rule 10b5-1 trading plan adopted by MMMK Development, Inc., an entity in which Mente holds shared voting and dispositive power. The total value of these transactions amounted to approximately $5.86 million. Despite recent selling pressure, InvestingPro analysis reveals the company maintains strong fundamentals with a current ratio of 2.71 and more cash than debt on its balance sheet.
Mente's transactions were part of a broader strategy involving the conversion of Class B common stock into Class A common stock, which he subsequently sold. As of the latest filing, Mente holds no shares of Class A common stock directly. The stock currently trades at a P/E ratio of 51.3x, suggesting premium valuation levels. Investors seeking deeper insights can access comprehensive analysis and 16 additional ProTips through InvestingPro's detailed research reports.
In other recent news, Revolve Group Inc. has exhibited a strong performance in Q3 2024, with a 10% year-over-year increase in net sales, reaching $283 million. The company's net income also significantly increased to $11 million, or $0.15 per diluted share, a substantial rise from the $3 million reported in the same quarter of the previous year. Adjusted EBITDA also saw an 85% growth, hitting $18 million. Furthermore, KeyBanc has reiterated its Sector Weight rating for Revolve, noting an increase in promotional activity post-Black Friday. Approximately 61% of items on the core Revolve platform are discounted as of December 2, 2024. The company's SKU count on its website has grown by 9% year-to-date, with an increase in the first week of August. In terms of future expectations, Revolve plans to open a Revolve Holiday Shop and a flagship store by mid-2025. Despite higher than desired inventory levels, alignment with sales growth is anticipated by Q4. These are among the recent developments for Revolve Group Inc.
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