Vanguard Personalized Indexing Management LLC significantly increased its stake in RLX Technology Inc. Sponsored ADR (NYSE: RLX) during the second quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), Vanguard raised its holdings in RLX by an impressive 73.8%, bringing its total to 40,168 shares after acquiring an additional 17,060 shares. As of the recent filing, these shares are valued at approximately $89,000.
Several other institutional investors have also adjusted their positions in RLX Technology. Ground Swell Capital LLC entered the market with a new stake valued at $47,000 during the first quarter. In a notable move, Headlands Technologies LLC expanded its stake by 411.8%, now owning 25,766 shares worth $48,000 after purchasing 20,732 shares. Additionally, Russell Investments Group Ltd. increased its holdings by 116.8%, reaching 150,038 shares valued at $282,000.
Nuveen LLC also made headlines by acquiring a new stake in RLX Technology valued at around $597,000. Meanwhile, the Public Employees Retirement System of Ohio boosted its holdings by 9.2% in the same period, now owning 323,016 shares worth $714,000. Overall, institutional investors control 22.68% of the company’s stock.
RLX Technology’s Market Performance
As of Monday, RLX Technology shares opened at $2.44. The company has experienced a 12-month low of $1.57 and a high of $2.84. With a market capitalization of $3.82 billion, the firm has a price-to-earnings (P/E) ratio of 34.79 and a beta of 1.10, indicating a moderate level of volatility in relation to the market.
RLX Technology posted its latest earnings results on August 22, 2023. The company reported earnings of $0.02 per share, falling short of analysts’ consensus estimates of $0.18 by $0.16. The reported revenue for the quarter stood at $122.88 million, significantly below the expected $725 million. The business maintains a net margin of 22.32% and a return on equity of 4.54%.
Dividend Announcement and Analyst Ratings
RLX Technology recently declared an annual dividend, which was disbursed on September 26, 2023. Shareholders of record as of September 12, 2023 received a dividend of $0.01 per share, reflecting a dividend yield of 38.0%. The dividend payout ratio stands at 14.29%.
Equity research analysts have offered mixed reviews on RLX Technology’s stock. Weiss Ratings maintained a “hold (c)” rating in a research note issued on Saturday. Wall Street Zen upgraded the stock from “sell” to “hold” on August 30, 2023. Currently, two analysts rate the stock as a “hold,” with an average consensus price target of $2.25 according to data from MarketBeat.
Founded in 2018 and headquartered in Beijing, China, RLX Technology Inc. specializes in the manufacturing and sale of e-vapor products both domestically and internationally, serving partner distributors and retail outlets. As the company continues to grow, it remains to be seen how these institutional investments will influence its future performance in the competitive landscape of the e-vapor market.
