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

Wall Street Zen lowered shares of RLX Technology (NYSE:RLX) from a hold rating to a sell rating in a research note released on Sunday morning.

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

RLX Technology Stock Down 0.6%

RLX opened at $2.32 on Friday. RLX Technology has a twelve month low of $1.66 and a twelve month high of $2.84. The company has a fifty day moving average of $2.38 and a 200-day moving average of $2.37. The stock has a market cap of $3.64 billion, a PE ratio of 33.07 and a beta of 1.10.

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). RLX Technology had a net margin of 21.05% and a return on equity of 4.74%. The firm had revenue of $158.63 million during the quarter, compared to analyst estimates of $139.99 million.

RLX Technology declared that its Board of Directors has initiated a stock repurchase program on Wednesday, December 31st that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

RLX Technology Increases Dividend

The company also recently declared an annual dividend, which will be paid on Monday, February 9th. Shareholders of record on Monday, January 26th will be issued a $0.10 dividend. The ex-dividend date is Monday, January 26th. This is an increase from RLX Technology’s previous annual dividend of $0.01. This represents a yield of 390.0%. RLX Technology’s dividend payout ratio is currently 14.29%.

Hedge Funds Weigh In On RLX Technology

A number of institutional investors have recently modified their holdings of the company. Profund Advisors LLC lifted its holdings in shares of RLX Technology by 21.0% in the 3rd quarter. Profund Advisors LLC now owns 40,305 shares of the company’s stock worth $106,000 after purchasing an additional 7,006 shares in the last quarter. Franklin Resources Inc. lifted its stake in shares of RLX Technology by 2.2% in the third quarter. Franklin Resources Inc. now owns 482,778 shares of the company’s stock valued at $1,270,000 after buying an additional 10,522 shares in the last quarter. Vanguard Personalized Indexing Management LLC lifted its stake in shares of RLX Technology by 73.8% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 40,168 shares of the company’s stock valued at $89,000 after buying an additional 17,060 shares in the last quarter. BNP Paribas Financial Markets acquired a new position in shares of RLX Technology during the third quarter valued at about $60,000. Finally, Cresset Asset Management LLC bought a new stake in shares of RLX Technology during the third quarter worth about $66,000. 22.68% of the stock is owned by institutional investors and hedge funds.

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.