Richardson Electronics (NASDAQ:RELL) Stock Rating Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Richardson Electronics from “strong buy” to “hold.” The broader analyst consensus is also “hold,” with an average price target of $24.00.
• Richardson Electronics reported quarterly EPS of $0.21, exceeding the $0.07 consensus estimate, while revenue of $66.2 million surpassed expectations of $55.37 million.
• Insiders sold significant shares: executives sold 133,585 shares worth approximately $2.57 million over the past quarter, while institutional investors own about 71.95% of the stock.

Richardson Electronics (NASDAQ:RELL - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

RELL has been the topic of several other research reports. Northland Securities raised Richardson Electronics from a "market perform" rating to an "outperform" rating and upped their target price for the company from $14.00 to $24.00 in a research report on Tuesday, July 28th. Wall Street Zen upgraded shares of Richardson Electronics from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Richardson Electronics in a report on Monday, July 20th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Richardson Electronics has a consensus rating of "Hold" and an average target price of $24.00.

Richardson Electronics Trading Up 1.1%

RELL stock opened at $17.30 on Monday. The firm has a market cap of $254.14 million, a P/E ratio of 39.32, a P/E/G ratio of 1.36 and a beta of 1.25. The business's 50 day moving average is $18.12 and its 200-day moving average is $16.23. Richardson Electronics has a 1-year low of $9.37 and a 1-year high of $23.15.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.14. Richardson Electronics had a return on equity of 3.55% and a net margin of 2.79%.The business had revenue of $66.20 million for the quarter, compared to analysts' expectations of $55.37 million. Sell-side analysts forecast that Richardson Electronics will post 0.5 EPS for the current year.

Insider Activity at Richardson Electronics

In related news, CFO Robert J. Ben sold 9,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $21.61, for a total transaction of $194,490.00. Following the completion of the transaction, the chief financial officer directly owned 60,534 shares of the company's stock, valued at approximately $1,308,139.74. This represents a 12.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jens Ruppert sold 37,500 shares of Richardson Electronics stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $19.01, for a total value of $712,875.00. Following the sale, the executive vice president owned 2,000 shares of the company's stock, valued at approximately $38,020. This trade represents a 94.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 133,585 shares of company stock worth $2,565,216 over the last quarter. 31.65% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Richardson Electronics

Several institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in Richardson Electronics in the 2nd quarter worth $18,874,000. First Wilshire Securities Management Inc. increased its holdings in Richardson Electronics by 13.9% in the 1st quarter. First Wilshire Securities Management Inc. now owns 671,998 shares of the technology company's stock worth $7,358,000 after buying an additional 82,054 shares during the period. AIGH Capital Management LLC acquired a new stake in Richardson Electronics during the 2nd quarter valued at approximately $3,810,000. Bank of New York Mellon Corp purchased a new position in shares of Richardson Electronics during the second quarter worth $1,995,000. Finally, Annis Gardner Whiting Capital Advisors LLC purchased a new stake in Richardson Electronics in the first quarter valued at $1,095,000. Institutional investors and hedge funds own 71.95% of the company's stock.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. NASDAQ: RELL is a global provider of engineered solutions, electronic components and replacement parts for industrial, healthcare, aviation and other specialized markets. The company serves original equipment manufacturers, maintenance providers and end users through its technical expertise, product distribution capabilities and customized engineering services.

Its business is organized around several principal areas. Richardson Healthcare supplies replacement parts and components for medical imaging systems, including ultrasound transducers and other products used in diagnostic imaging equipment.

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