Revlon bought Elizabeth Arden in 2016, which represented an $870 million attempt to fend off competition. It houses brands including Britney Spears and Christina Aguilera fragrances. In the end, the company filed for bankruptcy on June 16, with the firm stock plummeting from $4 to the lows of $1. However, the stock is now surging in pre-market trading, up as much as 75% at the time of publication, after stories of a potential buyout from India’s conglomerate Reliance emerged. Revlon will be added to Reliance’s private label cosmetic brand Glimmer if the acquisition takes place.
REV chart and analysis
In short, the decline of REV shares began in November 2021, when the shares started a downward momentum dipping from $16 to $1, with the news of the bankruptcy filing. With the pre-market jump, the shares are back above all daily Simple Moving Averages (SMAs) on huge buying volumes. Accordingly, only one analyst is covering the stock, rating them hold and seeing a potential next 12 months price of $8.5, which is 322.89% higher than the last quoted price of $2.01. It seems as if the shareholders of Revlon might be given a liferaft after the news that the company has filed bankruptcy. Whether the acquisition actually happens is still unknown, with possible details of a deal yet to come out. For now, shareholders get to enjoy the over 70% jump in the stock pre-market. Buy stocks now with Interactive Broker – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
