RLX Technology (NYSE:RLX) Shares Gap Down on Disappointing Earnings

RLX Technology Inc. Sponsored ADR (NYSE:RLX) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $2.00, but opened at $1.85. RLX Technology shares last traded at $1.9550, with a volume of 1,084,185 shares changing hands.

The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.06). The business had revenue of $148.73 million during the quarter, compared to analysts’ expectations of $173.99 million. RLX Technology had a net margin of 20.76% and a return on equity of 6.15%.

Wall Street Analysts Forecast Growth

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, the company currently has an average rating of “Hold” and a consensus target price of $2.50.

Hedge Funds Weigh In On RLX Technology

Several large investors have recently bought and sold shares of RLX. Bank of America Corp DE increased its position in shares of RLX Technology by 113.0% during the first quarter. Bank of America Corp DE now owns 2,449,708 shares of the company’s stock worth $5,389,000 after purchasing an additional 1,299,828 shares in the last quarter. OLP CAPITAL MANAGEMENT Ltd purchased a new position in RLX Technology during the 1st quarter worth approximately $29,013,000. Renaissance Technologies LLC purchased a new position in RLX Technology during the 1st quarter worth approximately $1,976,000. Sei Investments Co. acquired a new position in RLX Technology during the first quarter worth approximately $687,000. Finally, Dimensional Fund Advisors LP acquired a new position in RLX Technology during the first quarter worth approximately $32,000. Institutional investors and hedge funds own 22.68% of the company’s stock.

RLX Technology Price Performance

The stock has a 50 day simple moving average of $1.96 and a two-hundred day simple moving average of $2.13. The company has a market cap of $3.01 billion, a PE ratio of 19.45 and a beta of 1.20.

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.