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

Key Points

• RLX Technology shares hit a new 52-week low, falling to $1.76 and trading near $1.79, below both the 50-day and 200-day moving averages.
• The company’s latest quarterly results missed expectations: earnings per share came in at $0.03 versus $0.09 expected, while revenue was $148.73 million compared with the $173.99 million consensus estimate.
• Analyst sentiment remains cautious, with one firm downgrading the stock to “sell”; the overall consensus is “hold,” with an average price target of $2.50. Institutional investors own 22.68% of the company.

RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report) shares reached a new 52-week low on Tuesday . The company traded as low as $1.76 and last traded at $1.7850, with a volume of 215586 shares changing hands. The stock had previously closed at $1.81.

Analyst Ratings Changes

A number of research firms recently issued reports on RLX. Wall Street Zen cut shares of RLX Technology from a "hold" rating to a "sell" rating in a research report on Saturday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of RLX Technology in a research note on Friday, July 17th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $2.50.

RLX Technology Trading Down 1.9%

The firm has a market capitalization of $2.75 billion, a P/E ratio of 16.90 and a beta of 1.20. The company has a 50-day moving average of $1.94 and a 200-day moving average of $2.11.

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

Institutional Investors Weigh In On RLX Technology

Several large investors have recently modified their holdings of RLX. OLP CAPITAL MANAGEMENT Ltd bought a new position in shares of RLX Technology in the 1st quarter worth about $29,013,000. Pictet Asset Management Holding SA lifted its stake in shares of RLX Technology by 1,517.6% in the 1st 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 period. Mackenzie Financial Corp bought a new stake in shares of RLX Technology during the 3rd quarter valued at about $7,900,000. Mariner LLC boosted its position in shares of RLX Technology by 7,564.1% during the 3rd quarter. Mariner LLC now owns 1,668,476 shares of the company's stock valued at $4,388,000 after purchasing an additional 1,646,706 shares in the last quarter. Finally, Capitolis Liquid Global Markets LLC acquired a new stake in RLX Technology during the fourth quarter worth approximately $3,519,000. 22.68% of the stock is currently owned by institutional investors and hedge funds.

About RLX Technology

RLX Technology Inc NYSE: RLX is a China-based company specializing in electronic nicotine delivery systems. The company develops, manufactures and markets closed-pod vaping devices and prefilled cartridges, positioning its products as an alternative to traditional combustible tobacco. RLX emphasizes consistent nicotine delivery, flavor variety and convenience through its proprietary e-liquid formulations and device design.

RLX operates a vertically integrated business model that encompasses research and development, production, quality control and sales.

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