RLX Technology (NYSE:RLX) Sets New 12-Month Low - Time to Sell?

Key Points

• RLX Technology shares hit a new 52-week low, falling to $1.72 during Tuesday trading and last changing hands at $1.7550. The stock is down 0.8% and trades below both its 50-day and 200-day moving averages.
• The company’s latest quarterly results missed expectations, with earnings per share of $0.03 versus the $0.09 consensus estimate and revenue of $148.73 million versus $173.99 million expected.
• Analyst sentiment remains cautious: RLX has an average “Hold” rating and a $2.50 consensus price target, while Wall Street Zen recently downgraded the stock to “Sell.” Institutional investors own 22.68% of the shares.

Shares of RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $1.72 and last traded at $1.7550, with a volume of 2549486 shares. The stock had previously closed at $1.77.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the stock. Wall Street Zen lowered shares of RLX Technology from a "hold" rating to a "sell" rating in a report on Saturday, August 22nd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of RLX Technology in a report on Friday, July 17th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $2.50.

RLX Technology Trading Down 0.8%

The stock has a market cap of $2.72 billion, a price-to-earnings ratio of 16.71 and a beta of 1.16. The firm has a fifty day simple moving average of $1.91 and a 200 day simple moving average of $2.05.

RLX Technology (NYSE:RLX - Get Free Report) last issued its 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 business had revenue of $148.73 million during the quarter, compared to the consensus estimate of $173.99 million.

Institutional Trading of RLX Technology

A number of hedge funds have recently made changes to their positions in the business. WINTON GROUP Ltd boosted its stake in RLX Technology by 177.7% in 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 during the period. Engineers Gate Manager LP acquired a new position in shares of RLX Technology during the second quarter worth $71,000. Headlands Technologies LLC increased its position in RLX Technology by 26.0% during 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 during the period. Public Employees Retirement System of Ohio acquired a new stake in RLX Technology during the 2nd quarter worth about $674,000. Finally, Bank of America Corp DE lifted its stake in RLX Technology by 113.0% in the first quarter. Bank of America Corp DE now owns 2,449,708 shares of the company's stock valued at $5,389,000 after buying an additional 1,299,828 shares during the period. 22.68% of the stock is owned by institutional investors and hedge funds.

RLX Technology Company Profile

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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