RLX Technology (NYSE:RLX) Trading Up 4.2% - Should You Buy?

Key Points

• RLX Technology's stock rose by 4.2%, trading at $2.62 with a significantly lower trading volume of approximately 394,670 shares, compared to its average of over 4.5 million shares.
• Wall Street analysts recently upgraded RLX Technology's stock rating from "sell" to "hold", with a consensus target price of $2.25.
• The company reported disappointing earnings, with a net profit of only $0.02 per share, missing the consensus estimate of $0.18, and a revenue of $122.88 million versus an expected $725 million.

Shares of RLX Technology Inc. Sponsored ADR (NYSE:RLX - Get Free Report) were up 4.2% during mid-day trading on Tuesday . The stock traded as high as $2.62 and last traded at $2.62. Approximately 394,670 shares changed hands during mid-day trading, a decline of 91% from the average daily volume of 4,554,112 shares. The stock had previously closed at $2.51.

Analysts Set New Price Targets

Separately, Wall Street Zen upgraded shares of RLX Technology from a "sell" rating to a "hold" rating in a report on Saturday, August 30th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $2.25.

RLX Technology Stock Up 4.2%

The stock has a market capitalization of $4.11 billion, a P/E ratio of 37.36 and a beta of 1.10. The firm's 50 day simple moving average is $2.39 and its two-hundred day simple moving average is $2.14.

RLX Technology (NYSE:RLX - Get Free Report) last posted its quarterly earnings results on Friday, August 22nd. The company reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.16). RLX Technology had a net margin of 22.32% and a return on equity of 4.54%. The company had revenue of $122.88 million during the quarter, compared to the consensus estimate of $725.00 million.

RLX Technology Announces Dividend

The business also recently declared an annual dividend, which was paid on Friday, September 26th. Shareholders of record on Friday, September 12th were paid a $0.01 dividend. This represents a yield of 38.0%. The ex-dividend date of this dividend was Friday, September 12th. RLX Technology's payout ratio is 14.29%.

Institutional Investors Weigh In On RLX Technology

Several hedge funds and other institutional investors have recently made changes to their positions in the business. First Beijing Investment Ltd grew its position in RLX Technology by 75.6% in the 1st quarter. First Beijing Investment Ltd now owns 41,036,045 shares of the company's stock worth $77,148,000 after purchasing an additional 17,661,160 shares in the last quarter. Canada Pension Plan Investment Board grew its position in RLX Technology by 49,495,580.0% in the 1st quarter. Canada Pension Plan Investment Board now owns 2,474,784 shares of the company's stock worth $4,653,000 after purchasing an additional 2,474,779 shares in the last quarter. Nomura Holdings Inc. grew its position in RLX Technology by 54.3% in the 1st quarter. Nomura Holdings Inc. now owns 5,555,303 shares of the company's stock worth $10,444,000 after purchasing an additional 1,954,316 shares in the last quarter. Hosking Partners LLP grew its position in RLX Technology by 113.3% in the 1st quarter. Hosking Partners LLP now owns 2,093,781 shares of the company's stock worth $3,936,000 after purchasing an additional 1,112,248 shares in the last quarter. Finally, BRIGHT VALLEY CAPITAL Ltd boosted its stake in RLX Technology by 7.5% in the first quarter. BRIGHT VALLEY CAPITAL Ltd now owns 9,605,371 shares of the company's stock valued at $18,058,000 after acquiring an additional 671,639 shares during the last quarter. 22.68% of the stock is owned by institutional investors.

RLX Technology Company Profile

RLX Technology Inc, together with its subsidiaries, engages in the manufacture and sale of e-vapor products in the People's Republic of China and internationally. It serves partner distributors and retail outlets. The company was founded in 2018 and is headquartered in Beijing, China.

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