RLX Technology Inc. Sponsored ADR (NYSE:RLX) Sees Significant Drop in Short Interest

RLX Technology Inc. Sponsored ADR (NYSE:RLX) was the target of a large drop in short interest during the month of March. As of March 31st, there was short interest totaling 3,921,300 shares, a drop of 19.4% from the March 15th total of 4,865,788 shares. Based on an average daily volume of 3,323,379 shares, the short-interest ratio is currently 1.2 days. Currently, 0.5% of the company’s shares are sold short.

Institutional Trading of RLX Technology

A number of hedge funds and other institutional investors have recently modified their holdings of RLX. Schonfeld Strategic Advisors LLC acquired a new stake in shares of RLX Technology in the fourth quarter valued at about $26,000. Insigneo Advisory Services LLC acquired a new stake in shares of RLX Technology in the fourth quarter valued at about $29,000. AXQ Capital LP acquired a new stake in shares of RLX Technology in the fourth quarter valued at about $30,000. SmartHarvest Portfolios LLC acquired a new stake in shares of RLX Technology in the fourth quarter valued at about $40,000. Finally, BNP Paribas Financial Markets acquired a new stake in shares of RLX Technology in the third quarter valued at about $60,000. Institutional investors and hedge funds own 22.68% of the company’s stock.

RLX Technology Price Performance

Shares of RLX traded up $0.03 during midday trading on Thursday, hitting $2.19. The stock had a trading volume of 1,238,260 shares, compared to its average volume of 2,212,273. The company has a 50 day simple moving average of $2.27 and a two-hundred day simple moving average of $2.34. RLX Technology has a twelve month low of $1.67 and a twelve month high of $2.84. The firm has a market cap of $3.43 billion, a price-to-earnings ratio of 24.28 and a beta of 1.24.

RLX Technology (NYSE:RLX) last released its quarterly earnings results on Saturday, February 14th. The company reported $0.03 earnings per share (EPS) for the quarter. The firm had revenue of $163.13 million for the quarter. RLX Technology had a return on equity of 5.74% and a net margin of 23.27%.

RLX Technology announced that its board has initiated a share repurchase plan on Wednesday, December 31st that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on RLX. Wall Street Zen upgraded RLX Technology from a “sell” rating to a “hold” rating in a research report on Saturday, March 28th. Citigroup reduced their price target on RLX Technology from $2.60 to $2.50 and set a “neutral” rating on the stock in a research report on Monday, March 16th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of RLX Technology in a research report on Thursday, January 22nd. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $2.50.

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.