Healthy Upside Potential: RLX Technology Inc. (RLX)

RLX Technology Inc. (NYSE: RLX) stock jumped 0.67% on Friday to $1.50 against a previous-day closing price of $1.49. With 3.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.53 million shares. During the session, the Tobacco company that operates in wider Consumer Defensive sector, reached to the highest price of $1.5200 whereas the lowest price it dropped to was $1.4750. The 52-week range on RLX shows that it touched its highest point at $3.06 and its lowest point at $0.90 during that stretch. It currently has a 1-year price target of $2.71. Beta for the stock currently stands at 0.83.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RLX was up-trending over the past week, with a rise of 2.04%, but this was up by 1.35% over a month. Three-month performance dropped to -23.47% while six-month performance fell -39.02%. The stock gained 15.38% in the past year, while it has lost -34.78% so far this year. A look at the trailing 12-month EPS for RLX yields 0.04 with Next year EPS estimates of 0.08. For the next quarter, that number is 0.01. This implies an EPS growth rate of -24.40% for this year and 33.30% for next year.

Float and Shares Shorts:

At present, 1.32 billion RLX shares are outstanding with a float of 723.15 million shares on hand for trading. On Aug 30, 2023, short shares totaled 44.56 million, which was 2.84% higher than short shares on Jul 30, 2023. In addition to Ms. Wang Ying as the firm’s Co-founder, Chairperson of the Board of Directors & CEO, Mr. Jiang Long serves as its Co-founder & Director.

Institutional Ownership:

Through their ownership of 27.93% of RLX’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 5.16% of RLX, in contrast to 23.65% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in RLX with 5.05% of the stake, Goldman Sachs & Co. LLC holds 50,677,512 shares worth 50,677,512. A second-largest stockholder of RLX, Strategic Vision Investment Ltd., holds 40,280,110 shares, controlling over 4.01% of the firm’s shares. Morgan Stanley & Co. LLC is the third largest shareholder in RLX, holding 29,290,669 shares or 2.92% stake. With a 1.14% stake in RLX, the Vanguard Emerging Markets Stock I is the largest stakeholder. A total of 11,468,005 shares are owned by the mutual fund manager. The Vanguard Total International Stoc, which owns about 1.10% of RLX stock, is the second-largest Mutual Fund holder. It holds 11,060,336 shares valued at 16.92 million. iShares Core MSCI Emerging Market holds 0.51% of the stake in RLX, owning 5,145,032 shares worth 7.87 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, RLX reported revenue of $2.23B and operating income of $446.94M. The EBITDA in the recently reported quarter was $406.31M and diluted EPS was $0.35.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RLX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RLX analysts setting a high price target of $29.09 and a low target of $15.32, the average target price over the next 12 months is $19.77. Based on these targets, RLX could surge 1839.33% to reach the target high and rise by 921.33% to reach the target low. Reaching the average price target will result in a growth of 1218.0% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.