RLX Technology (NYSE:RLX) Trading Down 5.9% on Disappointing Earnings

Key Points

• RLX Technology shares fell 5.9% to about $1.83 after the company reported disappointing quarterly results, trading volume was also 39% below its average.
• The company posted earnings per share of $0.03, missing the $0.09 consensus estimate, while revenue of $148.73 million came in well below analysts’ $173.99 million forecast.
• Analysts maintain a consensus “Hold” rating with a $2.50 price target; institutional investors own 22.68% of the stock, including recent purchases by Bank of America and several investment firms.

RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report) shares fell 5.9% during trading on Monday following a weaker than expected earnings announcement. The company traded as low as $1.85 and last traded at $1.8250. Approximately 1,479,334 shares were traded during trading, a decline of 39% from the average daily volume of 2,427,041 shares. The stock had previously closed at $1.94.

The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.06). RLX Technology had a return on equity of 6.22% and a net margin of 20.24%.The company had revenue of $148.73 million for the quarter, compared to analyst estimates of $173.99 million.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated 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, Based on data from MarketBeat.com, RLX Technology has an average rating of "Hold" and a consensus price target of $2.50.

Hedge Funds Weigh In On RLX Technology

A number of institutional investors have recently bought and sold shares of the company. Bank of America Corp DE grew its stake in shares of RLX Technology by 113.0% in 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 buying an additional 1,299,828 shares during the period. OLP CAPITAL MANAGEMENT Ltd purchased a new stake in shares of RLX Technology during the 1st quarter valued at approximately $29,013,000. Renaissance Technologies LLC purchased a new stake in shares of RLX Technology during the 1st quarter valued at approximately $1,976,000. Sei Investments Co. acquired a new position in RLX Technology in the first quarter valued at approximately $687,000. Finally, Dimensional Fund Advisors LP acquired a new position in RLX Technology in the first quarter valued at approximately $32,000. 22.68% of the stock is owned by hedge funds and other institutional investors.

RLX Technology Price Performance

The stock has a market capitalization of $2.83 billion, a price-to-earnings ratio of 17.38 and a beta of 1.20. The business has a fifty day moving average of $1.96 and a 200 day moving average of $2.13.

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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