Richardson Electronics (NASDAQ:RELL) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Richardson Electronics from “hold” to “strong buy.” The stock has a consensus “buy” rating and a $26 price target from analysts.
• Richardson Electronics shares rose 5.5% to open at $21.10, near their 12-month high of $23.15. The company recently reported quarterly EPS of $0.27 and revenue of $64.92 million, exceeding analyst expectations.
• Institutional investors own approximately 71.95% of the company, while insiders sold 42,421 shares worth $860,345 over the past three months.

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

Several other equities analysts have also recently weighed in on the company. Wall Street Zen raised Richardson Electronics from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings upgraded shares of Richardson Electronics from a "hold (c)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Finally, Northland Securities set a $26.00 price target on shares of Richardson Electronics in a research report on Tuesday, October 13th. One investment analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $26.00.

Richardson Electronics Trading Up 5.5%

NASDAQ RELL opened at $21.10 on Tuesday. Richardson Electronics has a 12 month low of $9.37 and a 12 month high of $23.15. The stock's fifty day moving average price is $18.06 and its 200-day moving average price is $15.66. The stock has a market cap of $313.90 million, a P/E ratio of 36.38, a P/E/G ratio of 0.91 and a beta of 1.32.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last issued its earnings results on Wednesday, October 7th. The technology company reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.18. The firm had revenue of $64.92 million for the quarter, compared to the consensus estimate of $58.98 million. Richardson Electronics had a net margin of 3.57% and a return on equity of 4.82%. As a group, analysts forecast that Richardson Electronics will post 0.78 earnings per share for the current fiscal year.

Insider Activity at Richardson Electronics

In related news, CFO Robert Ben sold 9,000 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $21.61, for a total value of $194,490.00. Following the transaction, the chief financial officer directly owned 60,534 shares of the company's stock, valued at approximately $1,308,139.74. The trade was a 12.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Wendy Diddell sold 23,901 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $20.00, for a total value of $478,020.00. Following the completion of the transaction, the chief operating officer owned 114,150 shares of the company's stock, valued at $2,283,000. The trade was a 17.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 42,421 shares of company stock worth $860,345 in the last three months. Corporate insiders own 31.65% of the company's stock.

Hedge Funds Weigh In On Richardson Electronics

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Hsbc Holdings PLC bought a new stake in Richardson Electronics in the 2nd quarter worth approximately $208,000. Empowered Funds LLC bought a new position in shares of Richardson Electronics during the 2nd quarter valued at approximately $419,000. Algert Global LLC boosted its position in shares of Richardson Electronics by 88.4% during the 2nd quarter. Algert Global LLC now owns 22,235 shares of the technology company's stock valued at $423,000 after acquiring an additional 10,433 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Richardson Electronics in the second quarter valued at $293,000. Finally, BlackRock Inc. purchased a new position in shares of Richardson Electronics in the second quarter valued at $18,874,000. Institutional investors 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 specialized industrial and healthcare applications. The company serves original equipment manufacturers, government agencies, medical facilities, distributors and other commercial customers through its product portfolio and technical support services.

Its Power and Microwave Technologies business supplies components and systems used in power conversion, renewable energy, semiconductor manufacturing, aerospace and defense, telecommunications, and other industrial markets.

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