Michael Mente, Co-CEO of Revolve Group , Inc. (NYSE:RVLV), recently sold shares worth approximately $8.04 million, according to a recent SEC filing. The transactions occurred over three days, starting on November 20, 2024.
On November 20, Mente sold 60,327 shares at an average price of $33.33, followed by 13,456 shares at $33.76. The following day, November 21, he sold 62,032 shares at an average price of $34.70 and 26,021 shares at $35.03.
The final sales took place on November 22, with 69,930 shares sold at $35.19 and 1,533 shares at $35.72. These sales were made through MMMK Development, Inc., under a Rule 10b5-1 trading plan adopted on December 11, 2023.
Following these transactions, Mente holds no direct shares under the MMMK Development, Inc. entity.
In other recent news, Revolve Group Inc. reported robust growth in its third quarter of 2024. The company saw a 10% increase in net sales, reaching $283 million, and a notable rise in net income to $11 million, or $0.15 per diluted share. Adjusted EBITDA also showed a significant 85% growth, reaching $18 million. Co-CEOs Mike Karanikolas and Michael Mente attribute these positive results to improved logistics, decreased return rates, and strong performance in key categories.
Revolve's strategic investments in AI technology, international expansion, and marketing initiatives have also played a vital role in its growth trajectory. The company reported a 20% growth in international sales, with a strong presence in the Chinese market. Furthermore, active customer numbers increased by 51,000, nearly doubling the previous quarter's growth.
However, the company did note that inventory levels were higher than desired, but it expects alignment with sales growth by the fourth quarter. Despite a slight projected decline in Q4 gross margin due to markdowns and freight costs, Revolve remains optimistic about its future, backed by strategic investments and a strong balance sheet.
InvestingPro Insights
Revolve Group's recent stock performance aligns with the insider selling activity reported. According to InvestingPro data, RVLV has seen a strong return over the last month, with a 40.25% price increase. This surge has pushed the stock near its 52-week high, currently trading at 97.66% of that peak.
The company's financial health appears robust, with InvestingPro Tips highlighting that Revolve holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This strong financial position may provide some context for the insider selling, as the company seems well-positioned for stability.
However, investors should note that RVLV is trading at high valuation multiples. The stock's P/E ratio stands at 60.99, and its PEG ratio is 2.08, indicating it may be trading at a premium relative to its earnings growth. This aligns with an InvestingPro Tip suggesting that RVLV is trading at a high earnings multiple.
For readers seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Revolve Group, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.