RLX Technology (NYSE:RLX) Reaches New 52-Week Low - Should You Sell?

Key Points

• RLX Technology shares fell to a new 52-week low of $1.74, trading about 2% lower, with the stock below both its 50-day and 200-day moving averages.
• The company’s latest quarterly results missed expectations: earnings per share were $0.03 versus the $0.09 consensus estimate, while revenue of $148.73 million fell short of the $173.99 million forecast.
• Analyst sentiment is cautious, with a consensus “Hold” rating and a $2.50 price target; Wall Street Zen recently downgraded the stock to “Sell,” while institutional investors own 22.68% of outstanding shares.

RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report)'s stock price hit a new 52-week low during trading on Wednesday . The stock traded as low as $1.74 and last traded at $1.7450, with a volume of 1625076 shares changing hands. The stock had previously closed at $1.79.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of RLX Technology in a research note on Friday, July 17th. Wall Street Zen cut RLX Technology from a "hold" rating to a "sell" rating in a research note on Saturday, August 22nd. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $2.50.

RLX Technology Trading Down 2.0%

The company has a market cap of $2.72 billion, a PE ratio of 16.71 and a beta of 1.16. The company's 50 day moving average is $1.93 and its 200 day moving average is $2.06.

RLX Technology (NYSE:RLX - Get Free Report) last released its quarterly earnings data 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). The company had revenue of $148.73 million during the quarter, compared to analysts' expectations of $173.99 million. RLX Technology had a net margin of 20.24% and a return on equity of 6.20%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. WINTON GROUP Ltd raised its position in RLX Technology by 177.7% during the 2nd quarter. WINTON GROUP Ltd now owns 117,910 shares of the company's stock valued at $224,000 after purchasing an additional 75,443 shares in the last quarter. Engineers Gate Manager LP purchased a new position in shares of RLX Technology during the second quarter valued at $71,000. Headlands Technologies LLC raised its holdings in shares of RLX Technology by 26.0% in the 2nd quarter. Headlands Technologies LLC now owns 69,479 shares of the company's stock valued at $132,000 after purchasing an additional 14,350 shares in the last quarter. Public Employees Retirement System of Ohio bought a new position in RLX Technology in the second quarter worth approximately $674,000. Finally, Bank of America Corp DE lifted its stake in shares of RLX Technology by 113.0% during 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 during the last quarter. Institutional investors own 22.68% of the company's stock.

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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