Michael Mente, Co-Chief Executive Officer of Revolve Group , Inc. (NYSE:RVLV), recently executed several stock transactions, according to a recent SEC filing. Over the span of three days, Mente sold a total of 203,373 shares of Revolve Group's Class A common stock, generating approximately $7.78 million.
The transactions occurred on November 4, 5, and 6. On November 4, Mente sold 20,373 shares at an average price of $25.95 per share. The following day, he sold 37,103 shares at an average price of $25.92. On November 6, he executed multiple sales: 19,938 shares at $29.69, 55,394 shares at $30.79, 78,122 shares at $31.81, and 46,546 shares at $32.32.
These sales were conducted through MMMK Development, Inc., a company where Mente holds shared voting and dispositive power. The transactions were made under a Rule 10b5-1 trading plan adopted by MMMK Development, Inc. in December 2023. Following these sales, Mente retains ownership of 73,000 shares of Class A common stock directly.
In other recent news, Revolve Group Inc. reported impressive growth in its third quarter of 2024. The company's net sales reached $283 million, marking a 10% increase from the previous year, while net income saw a significant rise to $11 million. Adjusted EBITDA also showed substantial growth, up by 85% to $18 million.
Revolve's Co-CEOs, Mike Karanikolas and Michael Mente, attributed this growth to improved logistics, a decrease in return rates, and strong performance in key categories. The company also emphasized its strategic investments in AI technology, international expansion, and marketing initiatives as key drivers of its positive outlook.
The company's international sales grew by 20%, with a strong presence in the Chinese market. Despite higher than desired inventory levels, alignment with sales growth is expected by the fourth quarter. The company also revealed plans to open a Revolve Holiday Shop and a flagship store by mid-2025.
Revolve maintains a positive outlook, with a gross margin expected to be approximately 52.2% for the full year. The company's cash and cash equivalents stand at $253 million, with no debt. Despite a projected slight decline in Q4 gross margin due to markdowns and freight costs, the company's leadership remains optimistic about future growth.
InvestingPro Insights
Following Michael Mente's recent stock transactions, Revolve Group, Inc. (NYSE:RVLV) continues to show strong market performance. According to InvestingPro data, RVLV's stock has demonstrated impressive returns, with a 34.09% increase in the past week and a substantial 139.08% gain over the last year. This aligns with an InvestingPro Tip indicating that the company has seen a "Significant return over the last week."
The stock's current trading price is near its 52-week high, with the price at 98.4% of its highest point in the past year. This strength is further supported by another InvestingPro Tip suggesting that RVLV is "Trading near 52-week high."
While these metrics paint a picture of robust stock performance, it's worth noting that RVLV is trading at a high P/E ratio of 71.5, which may indicate that the stock is priced at a premium relative to its earnings. This is consistent with an InvestingPro Tip stating that RVLV is "Trading at a high earnings multiple."
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for RVLV, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable in light of the recent insider transactions and the stock's strong performance.
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