RLX Technology (NYSE:RLX) Hits New 1-Year Low - Here's What Happened

Key Points

• RLX Technology fell to a new 52-week low of $1.67 during Monday trading, with shares last trading around $1.72 on volume of nearly 44.8 million shares.
• The company’s latest quarterly results missed expectations, reporting EPS of $0.03 versus the $0.09 consensus estimate and revenue of $148.73 million versus the expected $173.99 million.
• Analysts maintain a consensus “Hold” rating, with a target price of $2.50, while institutional investors own 22.68% of the company and several increased their positions recently.

RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $1.67 and last traded at $1.7150, with a volume of 44772686 shares. The stock had previously closed at $1.68.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on RLX shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of RLX Technology in a research report on Friday, July 17th. Wall Street Zen upgraded RLX Technology from a "sell" rating to a "hold" rating in a research report on Saturday. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, RLX Technology presently has a consensus rating of "Hold" and a consensus target price of $2.50.

RLX Technology Stock Performance

The company's 50-day moving average price is $1.90 and its 200 day moving average price is $2.03. The stock has a market capitalization of $2.67 billion, a PE ratio of 16.52 and a beta of 1.16.

RLX Technology (NYSE:RLX - Get Free Report) last announced its quarterly earnings results on Friday, August 14th. The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.06). RLX Technology had a net margin of 20.24% and a return on equity of 6.20%. The company had revenue of $148.73 million for the quarter, compared to analysts' expectations of $173.99 million.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. OLP CAPITAL MANAGEMENT Ltd bought a new position in shares of RLX Technology during the first quarter valued at approximately $29,013,000. Pictet Asset Management Holding SA lifted its holdings in shares of RLX Technology by 1,517.6% during the first quarter. Pictet Asset Management Holding SA now owns 3,752,344 shares of the company's stock valued at $8,255,000 after purchasing an additional 3,520,377 shares during the last quarter. Bank of America Corp DE boosted its position in shares of RLX Technology by 113.0% in the 1st quarter. Bank of America Corp DE now owns 2,449,708 shares of the company's stock worth $5,389,000 after purchasing an additional 1,299,828 shares in the last quarter. Renaissance Technologies LLC bought a new stake in shares of RLX Technology in the 1st quarter worth approximately $1,976,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of RLX Technology in the 2nd quarter worth approximately $674,000. Institutional investors own 22.68% of the company's stock.

About RLX Technology

RLX Technology, Inc is a China-based company that develops, manufactures, and sells vaping products under the RELX brand. Its product portfolio includes electronic vaporizer devices, refillable or pre-filled pod cartridges, atomizers, and related accessories designed for adult consumers.

Founded in 2018, the company has focused on building a closed-system vaping platform that combines proprietary hardware, e-liquid formulations, and pod-based products. RLX Technology has also invested in research and development, manufacturing capabilities, and retail distribution to support its product offerings.

The company primarily serves the Chinese market and has pursued international expansion through sales and distribution in selected overseas markets.

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