RLX Technology (NYSE:RLX) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded RLX Technology from a "hold" to a "sell," though the stock's consensus rating remains "Hold" from two analysts with an average price target of $2.25.
• RLX reported quarterly EPS of $0.03 (in line with estimates) and revenue of $163.17 million, beating analysts' $152.06 million forecast, with a net margin of 21.05%.
• The stock opened at $2.25, has a market cap of $3.53 billion and a P/E of 24.95, a 52-week range of $1.66–$2.84, and several large institutional investors increased their stakes recently.

RLX Technology (NYSE:RLX - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Sunday.

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of RLX Technology in a research report on Thursday, January 22nd. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $2.25.

RLX Technology Stock Performance

NYSE:RLX opened at $2.25 on Friday. The company has a market capitalization of $3.53 billion, a price-to-earnings ratio of 24.95 and a beta of 1.11. RLX Technology has a one year low of $1.66 and a one year high of $2.84. The stock has a 50-day simple moving average of $2.33 and a 200 day simple moving average of $2.40.

RLX Technology (NYSE:RLX - Get Free Report) last announced its quarterly earnings data on Friday, March 13th. The company reported $0.03 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.03. RLX Technology had a return on equity of 4.74% and a net margin of 21.05%.The firm had revenue of $163.17 million for the quarter, compared to analysts' expectations of $152.06 million.

RLX Technology announced that its Board of Directors has authorized a stock buyback program on Wednesday, December 31st that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Institutional Trading of RLX Technology

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in shares of RLX Technology by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 27,144,029 shares of the company's stock valued at $63,246,000 after purchasing an additional 206,347 shares during the period. Perseverance Asset Management International grew its holdings in RLX Technology by 4.4% in the 4th quarter. Perseverance Asset Management International now owns 7,790,928 shares of the company's stock worth $18,153,000 after buying an additional 325,361 shares in the last quarter. Oasis Management Co Ltd. increased its position in RLX Technology by 2.4% in the 4th quarter. Oasis Management Co Ltd. now owns 6,497,600 shares of the company's stock valued at $15,139,000 after acquiring an additional 150,784 shares during the period. Mackenzie Financial Corp raised its stake in RLX Technology by 40.4% during the 4th quarter. Mackenzie Financial Corp now owns 4,218,617 shares of the company's stock valued at $9,642,000 after acquiring an additional 1,214,766 shares in the last quarter. Finally, Canada Pension Plan Investment Board boosted its position in RLX Technology by 53.7% during the 2nd quarter. Canada Pension Plan Investment Board now owns 3,804,284 shares of the company's stock worth $8,407,000 after acquiring an additional 1,329,500 shares during the period. Institutional investors and hedge funds own 22.68% of the company's stock.

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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