RLX Technology (NYSE:RLX) Shares Up 0.9% - Still a Buy?

Key Points

• RLX Technology shares rose 0.9% to $1.715, although trading volume was 34% below the average daily volume. The stock remains below its 50-day and 200-day moving averages of $1.78 and $1.95, respectively.
• Analysts maintain a generally cautious view, with an average rating of “Hold” and a consensus price target of $2.50. Wall Street Zen upgraded the stock from “Sell” to “Hold,” while Weiss Ratings reiterated its “Hold” rating.
• The company’s latest quarterly results missed expectations: earnings per share were $0.03 versus the $0.09 consensus, and revenue was $148.73 million compared with estimates of $173.99 million. Despite the miss, hedge funds increased their positions, and institutional investors own 22.68% of the stock.

RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report) shot up 0.9% during trading on Monday. The stock traded as high as $1.72 and last traded at $1.7150. Approximately 1,172,544 shares were traded during trading, a decline of 34% from the average daily volume of 1,774,685 shares. The stock had previously closed at $1.70.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on RLX shares. Weiss Ratings restated a "hold (c)" rating on shares of RLX Technology in a research report on Thursday. Wall Street Zen upgraded RLX Technology from a "sell" rating to a "hold" rating in a report on Saturday, September 19th. Two research analysts have rated the stock with a Hold rating. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $2.50.

RLX Technology Stock Performance

The stock has a 50 day moving average of $1.78 and a 200-day moving average of $1.95. The company has a market cap of $2.66 billion, a PE ratio of 16.33 and a beta of 1.14.

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 for the quarter, missing analysts' consensus estimates of $0.09 by ($0.06). RLX Technology had a return on equity of 6.20% and a net margin of 20.24%. The business had revenue of $148.73 million during the quarter, compared to analyst estimates of $173.99 million.

Hedge Funds Weigh In On RLX Technology

Several hedge funds have recently made changes to their positions in the company. OLP CAPITAL MANAGEMENT Ltd purchased a new position in shares of RLX Technology in the 1st quarter valued at approximately $29,013,000. Pictet Asset Management Holding SA increased its holdings in 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 in the last quarter. Bank of America Corp DE grew its stake in 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 valued at $5,389,000 after purchasing an additional 1,299,828 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in RLX Technology by 105.5% in the third quarter. Assenagon Asset Management S.A. now owns 1,495,059 shares of the company's stock valued at $2,542,000 after acquiring an additional 767,549 shares during the period. Finally, Renaissance Technologies LLC bought a new position in shares of RLX Technology in the first quarter worth $1,976,000. Hedge funds and other institutional investors own 22.68% of the company's stock.

RLX Technology Company Profile

RLX Technology Inc is a China-based consumer products company focused on the design, development, manufacture and sale of electronic vaping products. Its primary brand, RELX, offers vaping devices, prefilled pods and related accessories intended for adult consumers.

The company's product portfolio includes rechargeable vaping systems, disposable products and a range of flavored and tobacco-oriented pod options. RLX Technology has also invested in product research and development, supply-chain capabilities and technology intended to support the performance and safety of its vaping devices.

Founded in 2018 and headquartered in Beijing, RLX Technology distributes its products through retail and other sales channels in China, while also serving selected international markets through overseas distribution and commercial partnerships.

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