Is Buying Stock In RLX Technology Inc. (RLX) A Good Move Today?

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RLX Technology Inc. (NYSE:RLX) saw an upside of 1.47% to close Monday at $2.77 after adding $0.04 on the day. The 5-day average trading volume is 9,754,020 shares of the company’s common stock. It has gained $2.88 in the past week and touched a new high 4 times within the past 5 days. An average of 9,421,210 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 15,950,422.

RLX’s 1-month performance is 12.15% or $0.26 on its low of $2.23 reached on 12/30/22. The company’s shares have touched a 52-week low of $0.90 and high of $3.97, with the stock’s rally to the 52-week high happening on 01/20/23. YTD, RLX has achieved 20.43% or $0.47 and has reached a new high 3 times. However, the current price is down -30.23% from the 52-week high price.

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Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.18 while the price-to-book (PB) in the most recent quarter is 1.60.

RLX Technology Inc.’s quick ratio for the period ended December 30 was 10.70, with the current ratio over the same period at 10.80. In terms of profitability, the gross margin trailing 12 months is 42.40%. The firm’s gross profit as reported stood at $576.23 million against revenue of $1.34 billion.

Earnings Surprise

For the quarterly period ending December 30 this year, RLX Technology Inc.’s cash and short-term investments amounted to $568.31 million against total debt of $244.79 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 100.0% to $317.72 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected RLX to announce $0.04 per share in earnings in its latest quarter, but it posted $0.05, representing a 25.00% surprise. EBITDA for the quarter stood at more than $65.4 million. RLX stock balance sheet for the quarter ending December 30 shows that total liabilities totaled 199.37 million, with total debt at $244.79 million.

Let’s look briefly at RLX Technology Inc. (RLX) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 60.09% to suggest the stock is trending Neutral, with historical volatility in this time period at 62.97%.

The stock’s 5-day moving average is $2.66, reflecting a +0.73% or $0.02 change from its current price. RLX is currently trading +10.80% above its 20-day SMA, +93.71% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +84.67% and SMA200 by+48.13%.

Stochastic %K and %D was 79.14% and 70.63% and the average true range (ATR) pointed at 0.20. The RSI (14) points at 59.04%, while the 14-day stochastic is at 78.43% with the period’s ATR at 0.21. The stock’s 9-day MACD Oscillator is pointing at 0.07 and 0.09 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for RLX Technology Inc. (NYSE: RLX), BofA Securities launched coverage with a Neutral rating. Analysts offering their rating for RLX stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate RLX as a “sell,”, while 0 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 2 have offered a “buy” rating.

What is RLX’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $18.41 and a high of $65.81, with their median price target at $42.11. Looking at these predictions, the average price target given by analysts is for RLX Technology Inc. (RLX) stock is $42.11.

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