Institutional Sentiment Shifts on Revolve Group (RVLV) Amid Price Target Adjustments

Stifel’s December 12, 2025 coverage reaffirms its Buy stance on Revolve Group (NYSE: RVLV), though the consensus price forecast suggests caution. With an average one-year price target of $26.01 per share—ranging from $20.20 to $31.50—analysts are signaling potential downside of 8.96% from the stock’s December 6 closing price of $28.57.

Growth Projections and Valuation Metrics

The company’s financial outlook presents a mixed picture. Revolve Group anticipates annual revenue reaching 1,480 million, representing a robust 23.85% year-over-year increase. Non-GAAP earnings per share are projected at 1.55, providing some support for current valuations despite the analyst price target discount.

Institutional Positioning: A Tale of Divergent Strategies

Fund sentiment reveals interesting divergence among major stakeholders. Currently, 420 institutional investors and funds hold positions in RVLV, though this represents a 3.00% decrease (down 13 entities) from the prior quarter. The aggregate portfolio weighting increased modestly to 0.12% with a 6.94% gain, while total institutional share count declined 4.00% to 57.62 million shares. The put/call ratio of 0.57 reflects underlying bullish positioning among options traders.

Major Shareholder Movements: Contrasting Directions

Recent quarterly filings reveal contrasting investment decisions among top holders:

Kayne Anderson Rudnick Investment Management trimmed its position significantly, reducing holdings from 5.94 million to 4.41 million shares (10.91% ownership). This 34.73% reduction was accompanied by a 19.47% decrease in portfolio allocation weight—suggesting a more cautious stance despite maintained exposure.

Virtus KAR Small-Cap Growth Fund (PSGAX) demonstrated conviction, increasing shares from 2.75 million to 3.47 million (8.58% ownership). The 20.85% share increase was complemented by a 24.02% portfolio weight gain, indicating renewed confidence.

Fidelity Growth Company Fund (FDGRX) presented a nuanced position, adding shares marginally from 1.91 million to 1.94 million (4.81% ownership) while reducing portfolio allocation by 20.34%—a strategy suggesting rebalancing rather than sentiment reversal.

Goldman Sachs Group expanded holdings from 1.41 million to 1.85 million shares (4.59% ownership), a 24.17% increase, though portfolio allocation contracted by 70.42%—indicating share additions driven by overall portfolio expansion rather than conviction building.

William Blair Investment Management maintained steady growth, increasing from 1.78 million to 1.84 million shares (4.56% ownership) with a 3.58% share gain and corresponding 7.34% portfolio allocation increase.

Market Implications

The divergence in institutional behavior—with some major funds reducing exposure while others add positions—underscores ongoing market uncertainty around Revolve Group’s valuation relative to growth prospects. The analyst downside revision coupled with mixed institutional activity suggests investors should monitor quarterly results closely for evidence supporting the projected revenue acceleration.