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

Wall Street Zen downgraded shares of RLX Technology (NYSE:RLX) from a hold rating to a sell rating in a research note issued to investors on Tuesday.

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 data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $2.25.

RLX Technology Trading Down 1.9%

Shares of NYSE RLX opened at $2.27 on Tuesday. RLX Technology has a 12-month low of $1.66 and a 12-month high of $2.84. The firm has a 50 day moving average of $2.36 and a 200 day moving average of $2.38. The firm has a market capitalization of $3.56 billion, a price-to-earnings ratio of 32.36 and a beta of 1.10.

RLX Technology (NYSE:RLX) last issued its quarterly earnings results on Friday, November 14th. The company reported $0.02 earnings per share 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 for the quarter, compared to analysts’ expectations of $139.99 million.

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

RLX Technology Increases Dividend

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

Institutional Trading of RLX Technology

A number of large investors have recently made changes to their positions in the stock. Assenagon Asset Management S.A. bought a new position in RLX Technology in the second quarter worth approximately $1,282,000. Public Employees Retirement System of Ohio lifted its holdings in shares of RLX Technology by 9.2% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 323,016 shares of the company’s stock worth $714,000 after buying an additional 27,263 shares during the period. Vanguard Personalized Indexing Management LLC grew its position in shares of RLX Technology by 73.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 40,168 shares of the company’s stock worth $89,000 after buying an additional 17,060 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of RLX Technology during the 2nd quarter worth $99,000. Finally, Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of RLX Technology by 15.3% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,603,605 shares of the company’s stock valued at $3,544,000 after buying an additional 212,753 shares during the period. 22.68% of the stock is owned by hedge funds and other 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.