Is Revolve Group Stock a Buy or Sell After the Co-CEO Sold Shares for $6 Million?

Michael Mente, Co-Chief Executive Officer of Revolve Group (NYSE:RVLV), disposed of 194,196 shares via multiple open-market transactions from Jan. 7, 2026 through Jan. 9, 2026, as disclosed in the SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($31.03).

Key questions

• What proportion of Michael Mente's holdings were affected by this transaction?
  This transaction involved 194,196 shares of his indirect holdings, leaving his direct ownership of 73,000 shares and 30,280,422 shares held indirectly.
• How were the shares held prior to the sale, and what entity was involved?
  All shares sold in this transaction were indirectly held by MMMK Development, Inc, with no direct shares impacted; post-sale, Mr. Mente retains both direct ownership, and indirect holdings.
• Was this a typical transaction size for Mr. Mente, and what does it reflect about his remaining capacity?
  The 194,196 shares sold aligns closely with his historical median sell transaction (193,797 shares over the past year), with the high percentage of holdings sold now reflecting the reduced available share capacity after a series of large sales.
• Did the transaction involve derivative securities, and if so, what was the nature of the conversion?
  Yes, the sale involved the conversion of derivative securities into an equal number of Class A common shares prior to disposition as part of the open-market sale.

Company overview

* 1-year performance is calculated using Jan. 9, 2026 as the reference date.

Company snapshot

• Revolve Group offers a curated selection of women’s apparel, footwear, accessories, beauty products, and luxury goods through the REVOLVE and FWRD platforms, featuring both third-party and owned brands.
• It operates an e-commerce business model that leverages influencer partnerships and proprietary technology to drive direct-to-consumer sales and brand engagement.
• The company targets fashion-forward consumers primarily in the United States and internationally, with a focus on millennials and Gen Z shoppers seeking trend-driven styles.

Revolve Group is an online specialty retailer focused on contemporary fashion and luxury products.

The company’s dual-platform approach and strong influencer-driven marketing strategy enable it to reach a broad, digitally native customer base. With an e-commerce platform and a portfolio of owned and third-party brands, Revolve Group connects consumers with global fashion influencers and brand partners.

What this transaction means for investors

The sale of 194,196 shares in Revolve Group by Co-Chief Executive Officer Michael Mente is not a cause for concern. After his January transactions, he still retained over 30 million shares indirectly as well as 73,000 shares held directly.

The sale was performed as part of a prearranged Rule 10b5-1 trading plan, which he adopted in May of 2025. Such plans are often implemented by insiders to avoid accusations of performing trades based on insider information.

Mr. Mente's disposition came at a time when Revolve Group stock was on an upswing. The company's number of active customers increased 5% year over year in the third quarter, resulting in $295.6 million in Q3 sales, representing 4% year-over-year growth.

Revolve did a good job managing costs, which led to a 97% year-over-year rise in Q3 net income to $21.2 million. Its active customer base has expanded for seven consecutive years, which is helping the company's revenue growth.

Revolve's excellent business performance makes the stock a good investment. However, its solid Q3 results have caused the share price valuation to increase. Its price-to-earnings ratio of about 40 makes now a good time to sell shares but not necessarily to buy. Wait for the stock price to drop before deciding to invest.

Glossary

Form 4: A required SEC filing disclosing insider trades of company securities by officers, directors, or significant shareholders.
Open-market transaction: The buying or selling of securities on a public exchange, not through private or direct arrangements.
Indirect holdings: Securities owned through another entity, such as a trust or corporation, rather than held personally.
Direct holdings: Securities owned personally and registered in the individual's own name.
Derivative securities: Financial instruments whose value is based on an underlying asset, such as stock options or warrants.
Disposition: The act of selling or otherwise transferring ownership of an asset or security.
Class A common shares: A category of a company's common stock, often with specific voting rights or privileges.
Weighted average purchase price: The average price paid per share, factoring in the number of shares bought or sold at each price.
Insider trading: The buying or selling of a company’s securities by individuals with access to non-public, material information.
Proceeds: The total amount of money received from a sale or transaction.
Conversion: The process of changing one type of security, such as a derivative, into another, like common stock.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has positions in Revolve Group. The Motley Fool has positions in and recommends Revolve Group. The Motley Fool has a disclosure policy.