RLX Technology Inc. [RLX] fell -61.03% so far this year. What now?

RLX Technology Inc. [NYSE: RLX] loss -4.40% on the last trading session, reaching $1.52 price per share at the time. The company report on July 22, 2022 that RLX Technology Obtains License for Manufacturing Enterprise in China.


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RLX Technology Inc. (“RLX Technology” or the “Company”) (NYSE: RLX), a leading branded e-vapor company in China, today announced that one of its subsidiaries has obtained a License for Manufacturing Enterprise from the department of tobacco monopoly administration under the State Council of the People’s Republic of China (the “State Tobacco Monopoly Administration”) to own the RELX brand and manufacture RELX branded e-vapor rechargeable devices, cartridge products, and products sold in combination with e-vapor rechargeable devices and cartridge products in compliance with China’s Administrative Measures for E-Cigarettes. The approved manufacturing capacity is 15,050,000 units of e-vapor rechargeable devices per year, 328,700,000 units of cartridge products per year, and 6,100,000 units of disposable e-vapor products per year. The valid term for the License for Manufacturing Enterprise obtained is from July 18, 2022 to July 31, 2023.

Since the first quarter of 2022, the relevant government authorities in China have issued a series of implementing rules and guiding opinions to strengthen oversight of e-cigarette products and regulate the e-cigarette industry. These rules and opinions set forth that, among others, all e-cigarette manufacturing enterprises must apply with the State Tobacco Monopoly Administration and obtain a License for Manufacturing Enterprise.

RLX Technology Inc. represents 1.34 billion in outstanding shares, while the company has a total market value of $2.35 billion with the latest information. RLX stock price has been found in the range of $1.51 to $1.59.

If compared to the average trading volume of 7.49M shares, RLX reached a trading volume of 6030044 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about RLX Technology Inc. [RLX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RLX shares is $7.34 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RLX stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA Securities have made an estimate for RLX Technology Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 01, 2021. While these analysts kept the previous recommendation, Citigroup raised their target price to Buy. The new note on the price target was released on March 12, 2021, representing the official price target for RLX Technology Inc. stock. Previously, the target price had yet another raise to $30, while China Renaissance analysts kept a Buy rating on RLX stock.

The Average True Range (ATR) for RLX Technology Inc. is set at 0.12, with the Price to Sales ratio for RLX stock in the period of the last 12 months amounting to 2.02. The Price to Book ratio for the last quarter was 1.01, with the Price to Cash per share for the same quarter was set at 1.06.

Trading performance analysis for RLX stock

RLX Technology Inc. [RLX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.18. With this latest performance, RLX shares dropped by -19.15% in over the last four-week period, additionally sinking by -55.43% over the last 6 months – not to mention a drop of -66.59% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RLX stock in for the last two-week period is set at 37.49, with the RSI for the last a single of trading hit 34.72, and the three-weeks RSI is set at 39.77 for RLX Technology Inc. [RLX]. The present Moving Average for the last 50 days of trading for this stock 1.9422, while it was recorded at 1.5920 for the last single week of trading, and 2.7908 for the last 200 days.

RLX Technology Inc. [RLX]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and RLX Technology Inc. [RLX] shares currently have an operating margin of +26.98 and a Gross Margin at +43.09. RLX Technology Inc.’s Net Margin is presently recorded at +23.76.

Return on Equity for this stock inclined to 26.70, with Return on Assets sitting at 19.69.

RLX Technology Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.90 and a Current Ratio set at 5.00.

RLX Technology Inc. [RLX]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RLX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for RLX Technology Inc. go to 14.07%.

An analysis of insider ownership at RLX Technology Inc. [RLX]

There are presently around $419 million, or 31.40% of RLX stock, in the hands of institutional investors. The top three institutional holders of RLX stocks are: IDG CHINA VENTURE CAPITAL FUND V ASSOCIATES L.P. with ownership of 60,068,870, which is approximately 0% of the company’s market cap and around 39.34% of the total institutional ownership; WILDCAT CAPITAL MANAGEMENT, LLC, holding 30,893,022 shares of the stock with an approximate value of $46.96 million in RLX stocks shares; and APOLETTO LTD, currently with $43.55 million in RLX stock with ownership of nearly 0% of the company’s market capitalization.

Positions in RLX Technology Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 42 institutional holders increased their position in RLX Technology Inc. [NYSE:RLX] by around 23,047,317 shares. Additionally, 69 investors decreased positions by around 35,203,458 shares, while 24 investors held positions by with 217,352,655 shares. The mentioned changes placed institutional holdings at 275,603,430 shares, according to the latest SEC report filing. RLX stock had 22 new institutional investments in for a total of 7,516,965 shares, while 20 institutional investors sold positions of 9,770,681 shares during the same period.

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