Relx (NYSE:RELX) Shares Gap Down - Should You Sell?

Key Points

• Shares of RELX gapped down, opening at $28.03 after a $29.29 close and trading around $27.77, down roughly 5.2% on about 904,000 shares traded.
• Analyst consensus is an average rating of Buy (two Strong Buy, four Buy, two Hold), with recent notes ranging from Citigroup's "neutral" to upgrades by Deutsche Bank and Zacks.
• Technical and financial red flags include the stock trading well below its 50‑day ($39.16) and 200‑day ($43.45) moving averages and low liquidity (quick ratio 0.42, current ratio 0.47) alongside a high debt-to-equity of 2.55, although large institutions like Capital International have recently increased holdings.

Shares of Relx Plc (NYSE:RELX - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $29.29, but opened at $28.03. Relx shares last traded at $27.7730, with a volume of 904,005 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Citigroup began coverage on Relx in a research note on Monday, January 12th. They issued a "neutral" rating for the company. Deutsche Bank Aktiengesellschaft raised Relx from a "hold" rating to a "buy" rating in a report on Tuesday, December 9th. Zacks Research raised Relx from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, January 6th. Morgan Stanley reaffirmed an "overweight" rating on shares of Relx in a research note on Monday, February 2nd. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Relx in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy".

Relx Trading Down 5.2%

The stock has a 50-day simple moving average of $39.16 and a 200 day simple moving average of $43.45. The company has a quick ratio of 0.42, a current ratio of 0.47 and a debt-to-equity ratio of 2.55.

Institutional Investors Weigh In On Relx

Institutional investors and hedge funds have recently modified their holdings of the company. Capital International Investors grew its position in Relx by 66.7% in the 4th quarter. Capital International Investors now owns 10,662,595 shares of the technology company's stock valued at $433,887,000 after acquiring an additional 4,264,474 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Relx by 7.9% during the third quarter. Dimensional Fund Advisors LP now owns 3,446,125 shares of the technology company's stock worth $164,575,000 after purchasing an additional 252,390 shares in the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Relx by 1.4% in the third quarter. Ameriprise Financial Inc. now owns 3,390,649 shares of the technology company's stock valued at $164,120,000 after purchasing an additional 46,515 shares in the last quarter. Northern Trust Corp increased its stake in Relx by 3.5% during the 3rd quarter. Northern Trust Corp now owns 2,430,755 shares of the technology company's stock worth $116,093,000 after buying an additional 81,195 shares during the period. Finally, Envestnet Asset Management Inc. increased its stake in Relx by 0.8% during the 3rd quarter. Envestnet Asset Management Inc. now owns 1,784,488 shares of the technology company's stock worth $85,227,000 after buying an additional 14,404 shares during the period. Hedge funds and other institutional investors own 15.02% of the company's stock.

About Relx

RELX plc is a global provider of information, analytics and decision tools for professional and business customers. The company supplies content, data and analytical services that support decision-making across scientific, technical and medical research, legal and regulatory practice, and risk and business analytics. RELX's offerings are largely delivered via digital platforms and subscription services designed for institutions, corporations and professionals who require specialized, high-value information and workflow solutions.

RELX operates through distinct business lines that include Elsevier, which provides scientific, technical and medical journals, books and online platforms such as research and discovery tools; Legal and Professional services, which deliver legal, regulatory and compliance content and workflow solutions; Risk & Business Analytics, which offers data, analytics and decision tools for insurance, banking, corporate and government risk assessment; and Exhibitions, which organizes industry trade shows and events.

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