Rev Group (REVG) Sets New 12-Month Low on Disappointing Earnings

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Rev Group Inc (NYSE:REVG) reached a new 52-week low on Thursday following a dissappointing earnings announcement. The company traded as low as $12.72 and last traded at $14.31, with a volume of 132172 shares trading hands. The stock had previously closed at $14.01.

The company reported $0.38 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.44 by ($0.06). Rev Group had a return on equity of 13.03% and a net margin of 2.40%. The business had revenue of $597.70 million for the quarter, compared to analysts’ expectations of $649.64 million. During the same period in the previous year, the business posted $0.33 earnings per share. The company’s revenue for the quarter was up .4% on a year-over-year basis.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 30th. Shareholders of record on Wednesday, October 31st will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 1.43%. The ex-dividend date is Tuesday, October 30th. Rev Group’s payout ratio is currently 21.28%.

Several analysts have recently commented on the stock. ValuEngine cut shares of Rev Group from a “sell” rating to a “strong sell” rating in a research note on Saturday, June 2nd. SunTrust Banks cut shares of Rev Group from a “buy” rating to a “hold” rating and set a $33.00 target price for the company. in a research note on Thursday, June 7th. Morgan Stanley reduced their target price on shares of Rev Group from $30.00 to $20.00 and set a “hold” rating for the company in a research note on Friday, June 8th. Credit Suisse Group reduced their target price on shares of Rev Group from $32.00 to $20.00 and set an “outperform” rating for the company in a research note on Monday, June 11th. Finally, Deutsche Bank restated a “hold” rating and issued a $16.00 target price on shares of Rev Group in a research note on Wednesday. Two analysts have rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $23.11.

In other news, Director John Canan bought 5,040 shares of Rev Group stock in a transaction dated Monday, June 25th. The stock was bought at an average price of $16.04 per share, for a total transaction of $80,841.60. Following the purchase, the director now owns 5,763 shares of the company’s stock, valued at $92,438.52. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders bought a total of 7,040 shares of company stock valued at $112,892 in the last 90 days. Company insiders own 4.00% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in REVG. Van Berkom & Associates Inc. acquired a new stake in shares of Rev Group in the first quarter valued at about $69,394,000. Baird Financial Group Inc. lifted its stake in shares of Rev Group by 1,240.0% in the second quarter. Baird Financial Group Inc. now owns 1,340,000 shares of the company’s stock valued at $22,793,000 after purchasing an additional 1,240,000 shares during the period. American Century Companies Inc. acquired a new stake in shares of Rev Group in the second quarter valued at about $16,537,000. Dimensional Fund Advisors LP lifted its stake in shares of Rev Group by 117.6% in the second quarter. Dimensional Fund Advisors LP now owns 944,737 shares of the company’s stock valued at $16,070,000 after purchasing an additional 510,512 shares during the period. Finally, Vaughan Nelson Investment Management L.P. lifted its stake in shares of Rev Group by 53.1% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 1,442,683 shares of the company’s stock valued at $29,950,000 after purchasing an additional 500,633 shares during the period.

The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.75 and a current ratio of 2.04. The company has a market cap of $1.01 billion, a P/E ratio of 14.57, a PEG ratio of 1.91 and a beta of 1.61.

About Rev Group (NYSE:REVG)

REV Group, Inc designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment offers a range of fire apparatus and ambulance products for municipal fire departments, EMS providers, and private fleets through dealers.

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