Traders Purchase High Volume of RLX Technology Call Options (NYSE:RLX)

RLX Technology Inc. Sponsored ADR (NYSE:RLX) was the target of some unusual options trading activity on Wednesday. Stock investors acquired 2,642 call options on the stock. This is an increase of approximately 1,019% compared to the average volume of 236 call options.

RLX Technology Stock Up 0.7%

Shares of RLX traded up $0.02 during trading hours on Friday, reaching $2.30. 1,069,129 shares of the company traded hands, compared to its average volume of 2,223,712. The stock has a market capitalization of $3.60 billion, a PE ratio of 32.79 and a beta of 1.10. The stock has a fifty day simple moving average of $2.36 and a 200 day simple moving average of $2.38. RLX Technology has a fifty-two week low of $1.66 and a fifty-two week high of $2.84.

RLX Technology (NYSE:RLX) last issued its quarterly earnings results on Friday, November 14th. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.01). The business had revenue of $158.63 million for the quarter, compared to analysts’ expectations of $139.99 million. RLX Technology had a return on equity of 4.74% and a net margin of 21.05%.

RLX Technology Increases Dividend

The business also recently announced an annual dividend, which will be paid on Monday, February 9th. Investors of record on Monday, January 26th will be issued a dividend of $0.10 per share. This represents a dividend yield of 390.0%. The ex-dividend date is Monday, January 26th. This is an increase from RLX Technology’s previous annual dividend of $0.01. RLX Technology’s dividend payout ratio (DPR) is 14.29%.

RLX Technology declared that its board has approved a share repurchase program on Wednesday, December 31st that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on RLX shares. Weiss Ratings reissued a “hold (c)” rating on shares of RLX Technology in a report on Wednesday, October 8th. Wall Street Zen upgraded RLX Technology from a “sell” rating to a “hold” rating in a research report on Monday. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $2.25.

Institutional Investors Weigh In On RLX Technology

A number of institutional investors have recently modified their holdings of the stock. Mackenzie Financial Corp acquired a new position in RLX Technology in the third quarter worth $7,900,000. Mariner LLC raised its holdings in shares of RLX Technology by 7,564.1% during the third quarter. Mariner LLC now owns 1,668,476 shares of the company’s stock worth $4,388,000 after purchasing an additional 1,646,706 shares during the period. Canada Pension Plan Investment Board lifted its position in shares of RLX Technology by 53.7% in the 2nd quarter. Canada Pension Plan Investment Board now owns 3,804,284 shares of the company’s stock worth $8,407,000 after buying an additional 1,329,500 shares during the last quarter. Marshall Wace LLP boosted its holdings in shares of RLX Technology by 82.4% in the 3rd quarter. Marshall Wace LLP now owns 2,067,228 shares of the company’s stock valued at $5,437,000 after buying an additional 934,135 shares during the period. Finally, Arrowstreet Capital Limited Partnership acquired a new position in shares of RLX Technology in the 3rd quarter valued at about $2,388,000. Institutional investors and hedge funds own 22.68% of the company’s stock.

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.