A Revolve Group, Inc. (NYSE:RVLV) insider lowered their holding by 55% earlier this year

By
Simply Wall St
Published
April 16, 2022
NYSE:RVLV
Source: Shutterstock

Looking at Revolve Group, Inc.'s (NYSE:RVLV ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Revolve Group

The Last 12 Months Of Insider Transactions At Revolve Group

In the last twelve months, the biggest single sale by an insider was when the Independent Non-Employee Director, Marc Stolzman, sold US$302k worth of shares at a price of US$83.51 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$53.92). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Marc Stolzman.

Marc Stolzman divested 7.50k shares over the last 12 months at an average price of US$72.34. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:RVLV Insider Trading Volume April 16th 2022

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Insider Ownership of Revolve Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Revolve Group insiders own 0.3% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Revolve Group Insider Transactions Indicate?

The fact that there have been no Revolve Group insider transactions recently certainly doesn't bother us. Our analysis of Revolve Group insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Revolve Group (of which 1 is concerning!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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