RLX Technology (NYSE:RLX) Shares Gap Down After Earnings Miss

Key Points

• RLX Technology shares fell after an earnings miss, opening at $1.85 versus a prior close of $2.00. The stock later traded near $1.96.
• The company reported quarterly EPS of $0.03, below the $0.09 analyst consensus, while revenue of $148.73 million also missed expectations of $173.99 million.
• Analysts maintain a consensus “Hold” rating with a $2.50 target price. Institutional investors own 22.68% of the stock, with several major funds recently increasing their positions.

RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $2.00, but opened at $1.85. RLX Technology shares last traded at $1.9550, with a volume of 1,084,185 shares.

The company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.06). The business had revenue of $148.73 million during the quarter, compared to analysts' expectations of $173.99 million. RLX Technology had a net margin of 20.76% and a return on equity of 6.15%.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of RLX Technology in a research note on Friday, July 17th. Two analysts have rated the stock with a Hold rating, According to data from MarketBeat, RLX Technology currently has an average rating of "Hold" and a consensus target price of $2.50.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in RLX Technology by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 27,144,029 shares of the company's stock valued at $63,246,000 after acquiring an additional 206,347 shares during the period. OLP CAPITAL MANAGEMENT Ltd purchased a new stake in RLX Technology during the first quarter worth about $29,013,000. Perseverance Asset Management International lifted its position in shares of RLX Technology by 4.4% during the fourth quarter. Perseverance Asset Management International now owns 7,790,928 shares of the company's stock worth $18,153,000 after purchasing an additional 325,361 shares in the last quarter. Oasis Management Co Ltd. lifted its position in shares of RLX Technology by 2.4% during the fourth quarter. Oasis Management Co Ltd. now owns 6,497,600 shares of the company's stock worth $15,139,000 after purchasing an additional 150,784 shares in the last quarter. Finally, Mackenzie Financial Corp lifted its position in shares of RLX Technology by 40.4% during the fourth quarter. Mackenzie Financial Corp now owns 4,218,617 shares of the company's stock worth $9,642,000 after purchasing an additional 1,214,766 shares in the last quarter. 22.68% of the stock is currently owned by institutional investors and hedge funds.

RLX Technology Price Performance

The company's 50 day moving average price is $1.96 and its 200 day moving average price is $2.13. The firm has a market cap of $3.01 billion, a PE ratio of 19.45 and a beta of 1.20.

RLX Technology Company Profile

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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