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5 Investors Betting Big on Revlon (REV) Stock

  • Revlon (REV) filed for Chapter 11 bankruptcy in June.
  • Meanwhile, Citigroup (C) recently won a legal victory against Revlon’s lenders.
  • Shares of REV stock are down more than 55% year-to-date (YTD).
Revlon (REV) logo on the website homepage.
Source: Casimiro PT /

Revlon (NYSE:REV) stock is in the red this morning after rising by as much as 30% yesterday. Earlier this week, the 2nd U.S. Circuit Court of Appeals denied a request for Revlon lenders — such as Brigade Capital Management and Symphony Asset Management — to review a three-judge panel’s ruling that said they must pay back $504 million erroneously wired to them by Citigroup (NYSE:C) in 2020.

The lenders can still take the case to the Supreme Court, although Bloomberg Intelligence senior litigation analyst Elliott Stein believes the court will not take up the case. The lenders have up to 90 days to file a petition with the court.

Citigroup was reportedly “pleased” with the decision and added that the “mistakenly transferred funds should be returned as a matter of law, as well as ethics.”

Back in June, Revlon filed for Chapter 11 bankruptcy. The makeup and cosmetics company attributed its woes to a lack of raw materials, as well as a high debt load that caused it to be unable to make timely payments to vendors. At the time, the company expected to receive “$575 million in debtor-in-possession financing from its existing lender base.”

However, shares of REV stock are up more than 100% since June 16 as investors speculate that a potential buyout could send shares higher. Revlon may also be primed for a short squeeze. As of Sept. 30, REV’s percentage of float shorted totaled 25.3%, equivalent to 1.9 million shares worth $9.84 million.

5 Investors Betting Big on REV Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the second quarter, 49 13F filers reported owning REV stock, a stark decline of 15 funds from the previous quarter. Meanwhile, the institutional put/call ratio sits at 0.85, up from 0.58 during Q1. This means institutions own more put options against Revlon than call options. With that in mind, let’s take a look at this struggling company’s top shareholders:

  1. Mafco Holdings: 46.22 million shares. Mafco’s position is accurate as of Q1 2022.
  2. Mittleman Investment Management: 997,830 shares. Mittleman sold 370,351 shares during Q2.
  3. Morgan Stanley (NYSE:MS): 422,998 shares. Morgan Stanley purchased 400,650 shares during Q2.
  4. Vanguard: 360,418 shares. Vanguard sold 249,308 shares during Q2.
  5. Clear Street: 330,174 shares. Clear Street purchased its entire stake during Q2.

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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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