Revlon, Inc. (REV) – Is The Recent Reaction Justified?

The stock of Revlon, Inc. (NYSE:REV) has been Initiated to Hold by Jefferies in its latest research note that was published on September 13. REV was given a price target of $16, with other Wall Street analysts also giving their reports regarding the stock. BMO Capital Markets analysts bumped their recommendation on REV stock from Market Perform to Outperform in a separate flash note to investors on November 09

Revlon,’s stock is covered by 1 analysts, with none of them rating the stock as Buy. It has been deemed to have strong buy by none of the analysts, 1 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only none analysts. none of them rated it as strong buy with 1 of them recommended investors to Hold on to the stock. Meanwhile, none analyst(s) rated it as a sell. The above data shows that REV has an average analyst rating of 3.00.

Revlon, Inc., which has current market capitalization of above $803 Million, published its last quarter earnings on June 30, 2019. The company was able to amass $553.2 million in revenue. This figure is $0.4 million more than what analysts had expected which was $553.6 million. During the first quarter of the year, Revlon, also recorded $-1.2 earnings per share (EPS) which is $0.47 above the $-0.73 estimated by Thomson Reuter’s analyst, leading to a surprise factor of -64.38%.

REV surged by $0.30 during the normal trading session on Tuesday and reaching a high of $16.62 during the day while it closed the day at $14.81. The Revlon, stock had a low trading volume of 0.33 million shares on that day, which is low compared to the average daily volume of 114.62M shares. REV has also lost 18.45% of its value over the past 7 days. However, the stock has declined by 32.96% in the 3 months of the year. Over the past six months meanwhile, it has lost 42.51% while it has lost 41.21% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -39.62% from its 3 months high price. However, taking another look at REV will indicate that it is trading +2.07% away from its 90-day low. Looking at the bigger picture, the Revlon, Inc. stock has dropped by -50% from its 52-week high while it has surged by +2.07% from its 52-week low price.

On June 07, 2019 PERELMAN RONALD O, Director, 10% Owner bought 50000 shares of the company. The average price for that transaction was $23.32 per share, which meant that PERELMAN RONALD O spent $1166000 purchasing the stocks. The purchase was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with Director, 10% Owner, PERELMAN RONALD O purchasing 140000 shares of this stock on June 03, 2019. The average purchasing price for the stock was $21.34 per share, with the purchased stock accruing $2987600. Following this transaction, the Director, 10% Owner PERELMAN RONALD O now holds 46173321 shares of the company, which is worth around $754000000.

Revlon, has around 63 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $1 Trillion. The Revlon, stock is bringing in revenue of over 12 months, which is roughly 326 Billion. Despite all that, Revlon, Inc. is seeing things declining very much as their y-o-y quarterly revenue dropped by -6.02%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 2.99%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 4.57%. Over the past 20 days, Revlon,’s Stochastic %K stood at 3.63% while its Stochastic %D was revealed to be 8.07%.