Vanguard Personalized Indexing Management LLC has significantly increased its investment in RLX Technology Inc., boosting its holdings by an impressive 73.8% during the second quarter of 2023. According to its recent 13F filing with the Securities and Exchange Commission (SEC), Vanguard now owns 40,168 shares of RLX Technology, having acquired an additional 17,060 shares during the period. This stake is valued at approximately $89,000 as of the latest filing.
Several other institutional investors have also adjusted their positions in RLX Technology, reflecting a growing interest in the company. For instance, Ground Swell Capital LLC purchased a new stake valued at $47,000 in the first quarter. Meanwhile, Headlands Technologies LLC dramatically increased its stake by 411.8%, now holding 25,766 shares worth roughly $48,000 after acquiring an additional 20,732 shares.
Russell Investments Group Ltd. also enhanced its investment, raising its holdings by 116.8% to a total of 150,038 shares valued at about $282,000. Nuveen LLC added a new stake worth approximately $597,000, while the Public Employees Retirement System of Ohio increased its holdings by 9.2%, now owning 323,016 shares valued at $714,000. Collectively, institutional investors now control 22.68% of RLX Technology’s stock.
Stock Performance and Financial Results
On Monday, RLX Technology’s stock opened at $2.44, marking a 1.5% increase. The stock has fluctuated within a 12-month low of $1.57 and a 12-month high of $2.84. The company has a market capitalization of $3.82 billion, a PE ratio of 34.79, and a beta of 1.10.
RLX Technology reported its earnings results on August 22, 2023, revealing $0.02 earnings per share (EPS) for the quarter. This figure fell short of analysts’ consensus estimates, which anticipated $0.18 per share, resulting in a discrepancy of ($0.16). The company’s revenue for the quarter was reported at $122.88 million, significantly below the projected $725.00 million.
The firm also announced an annual dividend, paid on September 26, 2023, to stockholders of record as of September 12, 2023. Shareholders received a dividend of $0.01 per share, translating to a yield of 38.0%. RLX Technology’s dividend payout ratio stands at 14.29%.
Analyst Ratings and Future Outlook
Wall Street analysts have weighed in on RLX Technology’s stock, with Weiss Ratings reaffirming a “hold (c)” rating. Additionally, Wall Street Zen upgraded its recommendation from “sell” to “hold” in a report dated August 30, 2023. Currently, two analysts have rated the stock as holding, leading to an average rating of “Hold” and a consensus price target of $2.25.
Founded in 2018 and headquartered in Beijing, China, RLX Technology Inc. specializes in manufacturing and selling e-vapor products. The company serves various partner distributors and retail outlets, positioning itself within a competitive market.
In summary, the substantial increase in Vanguard’s stake and the interest from other institutional investors indicate a growing confidence in RLX Technology amid its recent financial performance and stock fluctuations. Observers will be keen to see how these developments impact the company’s trajectory in the coming quarters.
