Richardson Electronics (NASDAQ:RELL) Issues Quarterly Earnings Results

Richardson Electronics (NASDAQ:RELL) announced its quarterly earnings results on Wednesday. The technology company reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.02, FiscalAI reports. The company had revenue of $55.47 million for the quarter, compared to analysts’ expectations of $53.12 million. Richardson Electronics had a net margin of 0.38% and a return on equity of 3.30%.

Richardson Electronics Stock Up 19.8%

RELL traded up $2.33 during trading hours on Thursday, hitting $14.09. The stock had a trading volume of 433,808 shares, compared to its average volume of 137,206. The stock has a market cap of $204.59 million, a PE ratio of 281.86, a price-to-earnings-growth ratio of 1.75 and a beta of 1.13. Richardson Electronics has a 1 year low of $7.57 and a 1 year high of $15.34. The company’s fifty day simple moving average is $11.93 and its 200 day simple moving average is $11.11.

Richardson Electronics Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Friday, May 8th will be paid a dividend of $0.06 per share. The ex-dividend date is Friday, May 8th. This represents a $0.24 annualized dividend and a dividend yield of 1.7%. Richardson Electronics’s dividend payout ratio is presently 480.00%.

Wall Street Analyst Weigh In

RELL has been the topic of a number of analyst reports. Northland Securities set a $11.00 target price on shares of Richardson Electronics in a research report on Thursday, January 22nd. Weiss Ratings downgraded Richardson Electronics from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, January 9th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Richardson Electronics currently has an average rating of “Reduce” and a consensus target price of $11.00.

Insider Activity at Richardson Electronics

In other Richardson Electronics news, Director Kenneth Halverson sold 10,000 shares of the business’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $13.09, for a total transaction of $130,900.00. Following the sale, the director owned 14,345 shares of the company’s stock, valued at $187,776.05. The trade was a 41.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Jens Frank Ruppert sold 17,000 shares of the firm’s stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $12.09, for a total value of $205,530.00. Following the completion of the transaction, the executive vice president directly owned 39,500 shares of the company’s stock, valued at $477,555. The trade was a 30.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 36,000 shares of company stock worth $447,890. 33.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Richardson Electronics

Institutional investors have recently added to or reduced their stakes in the business. Aristides Capital LLC raised its holdings in shares of Richardson Electronics by 4.7% during the 4th quarter. Aristides Capital LLC now owns 20,940 shares of the technology company’s stock valued at $228,000 after buying an additional 940 shares in the last quarter. Nuveen LLC raised its position in Richardson Electronics by 9.7% in the 4th quarter. Nuveen LLC now owns 16,970 shares of the technology company’s stock worth $185,000 after purchasing an additional 1,507 shares during the period. Empowered Funds LLC increased its holdings in shares of Richardson Electronics by 9.0% in the fourth quarter. Empowered Funds LLC now owns 19,142 shares of the technology company’s stock worth $208,000 after buying an additional 1,587 shares during the period. Bridgeway Capital Management LLC grew its position in Richardson Electronics by 2.5% during the 4th quarter. Bridgeway Capital Management LLC now owns 65,753 shares of the technology company’s stock worth $715,000 after acquiring an additional 1,587 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in shares of Richardson Electronics by 298.8% in the second quarter. Tower Research Capital LLC TRC now owns 4,160 shares of the technology company’s stock worth $40,000 after purchasing an additional 3,117 shares during the last quarter. 71.95% of the stock is currently owned by institutional investors.

Richardson Electronics News Summary

Here are the key news stories impacting Richardson Electronics this week:

• Positive Sentiment: Beat on EPS and revenue — RELL reported $0.07 EPS for the quarter, above consensus, and revenue of $55.47M vs. analysts’ ~$53.1M forecast. Read More.
• Positive Sentiment: Operational momentum — Management flagged a 9.7% year?over?year increase in PMT net sales and an 11.4% sequential rise in backlog, which supports near?term revenue visibility. Read More.
• Positive Sentiment: Dividend declared — The board approved a $0.06 quarterly cash dividend (annualized yield ~1.8%); record/ex?div and pay dates were announced, which can attract income-oriented shareholders. Read More.
• Neutral Sentiment: Coverage and context — Market writeups and the earnings transcript are available for detail on segment performance and management commentary (useful but not new catalysts by themselves). Read More. • Read More.
• Negative Sentiment: Underlying margins and comparables — Net margin remains thin (~0.38%) and ROE is modest (~3.3%); EPS also declined from $0.11 a year ago to $0.07, and the stock trades at a high reported P/E, which could temper upside if growth slows or margins don’t expand.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. (NASDAQ:RELL) is a global manufacturer, distributor and servicer of engineered components and subsystems for a diverse range of industrial, medical and scientific applications. The company specializes in vacuum electron devices, high-voltage power supplies and related electronic components, offering klystrons, traveling wave tubes, magnetrons, X-ray tubes, microwave amplifiers and power conversion products. Its solutions support customers in power grid management, semiconductor processing, medical imaging, scientific instrumentation and telecommunications.

In addition to its manufacturing capabilities, Richardson Electronics maintains a broad distribution network comprising thousands of standard and custom parts.