Vanguard Personalized Indexing Management LLC significantly increased its investment in RLX Technology Inc. Sponsored ADR (NYSE: RLX) during the second quarter of 2023. In a recent filing with the Securities and Exchange Commission (SEC), Vanguard reported a 73.8% rise in its holdings, bringing its total to 40,168 shares after acquiring an additional 17,060 shares. As of the latest filing, Vanguard’s stake in RLX Technology is 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. Headlands Technologies LLC dramatically increased its stake by 411.8%, now holding 25,766 shares worth about $48,000 after purchasing 20,732 additional shares. Russell Investments Group Ltd. raised its holdings by 116.8%, acquiring a total of 150,038 shares valued at $282,000 following the purchase of 80,821 shares.
The Public Employees Retirement System of Ohio also boosted its investment in RLX Technology by 9.2%, bringing its total to 323,016 shares valued at $714,000. Collectively, institutional investors now own 22.68% of RLX Technology’s stock.
Market Performance and Financial Results
On Monday, RLX Technology shares opened at $2.44, reflecting a 1.5% increase. The company’s stock has experienced significant volatility, with a 12-month low of $1.57 and a high of $2.84. RLX Technology boasts a market capitalization of $3.82 billion, a price-to-earnings (P/E) ratio of 34.79, and a beta of 1.10.
RLX Technology’s most recent earnings report, released on August 22, 2023, revealed that the company earned $0.02 per share, falling short of analysts’ expectations of $0.18 per share. The firm generated revenue of $122.88 million for the quarter, significantly below the forecast of $725.00 million. Despite these challenges, RLX reported a net margin of 22.32% and a return on equity of 4.54%.
Dividend Announcement and Analyst Ratings
In a recent announcement, RLX Technology declared an annual dividend of $0.01 per share, which was paid on September 26, 2023. Shareholders of record as of September 12, 2023, received this dividend, resulting in an impressive dividend yield of 38.0%. The company’s dividend payout ratio stands at 14.29%.
Equities research analysts have recently provided insights on RLX Technology’s stock performance. Weiss Ratings maintained a “hold (c)” rating in their latest research note. Additionally, Wall Street Zen upgraded RLX Technology from a “sell” to a “hold” rating on August 30, 2023. Presently, two analysts have assigned a hold rating to the stock, with a consensus price target of $2.25, according to data from MarketBeat.
About RLX Technology
RLX Technology Inc., based in Beijing, China, specializes in the manufacture and sale of e-vapor products, serving both domestic and international markets. The company was founded in 2018 and has rapidly established a presence in the industry, catering to various distributors and retail outlets.
As RLX Technology navigates its current financial landscape, the increased interest from institutional investors may provide a stabilizing force, potentially positioning the company for future growth in the competitive e-vapor market.