RLX Technology (NYSE:RLX) Downgraded by Wall Street Zen to “Sell”

RLX Technology (NYSE:RLX) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

Separately, Weiss Ratings reiterated a “hold (c)” rating on shares of RLX Technology in a research report on Wednesday, October 8th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $2.25.

RLX Technology Stock Up 1.3%

Shares of RLX opened at $2.31 on Tuesday. RLX Technology has a twelve month low of $1.66 and a twelve month high of $2.84. The stock has a market capitalization of $3.63 billion, a P/E ratio of 33.00 and a beta of 1.10. The company has a 50 day moving average of $2.36 and a 200-day moving average of $2.38.

RLX Technology (NYSE:RLX) last released its earnings results on Friday, November 14th. The company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.03 by ($0.01). The company had revenue of $158.63 million for the quarter, compared to the consensus estimate of $139.99 million. RLX Technology had a return on equity of 4.74% and a net margin of 21.05%.

RLX Technology announced that its board has approved a stock repurchase program on Wednesday, December 31st that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in RLX. Oasis Management Co Ltd. grew its position in shares of RLX Technology by 5.1% during the 3rd quarter. Oasis Management Co Ltd. now owns 6,346,816 shares of the company’s stock valued at $16,692,000 after acquiring an additional 309,785 shares during the period. Canada Pension Plan Investment Board lifted its stake in RLX Technology by 53.7% in the second quarter. Canada Pension Plan Investment Board now owns 3,804,284 shares of the company’s stock valued at $8,407,000 after purchasing an additional 1,329,500 shares during the last quarter. Mackenzie Financial Corp bought a new position in RLX Technology during the third quarter valued at $7,900,000. Marshall Wace LLP increased its position in RLX Technology by 82.4% in the third quarter. Marshall Wace LLP now owns 2,067,228 shares of the company’s stock worth $5,437,000 after buying an additional 934,135 shares during the last quarter. Finally, Mariner LLC raised its stake in shares of RLX Technology by 7,564.1% in the third quarter. Mariner LLC now owns 1,668,476 shares of the company’s stock valued at $4,388,000 after buying an additional 1,646,706 shares during the period. 22.68% of the stock is owned by institutional investors.

About RLX Technology

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.