Richardson Electronics (NASDAQ:RELL) Announces Quarterly Earnings Results

Key Points

• Richardson Electronics beat quarterly expectations: It reported earnings of $0.27 per share versus the $0.09 consensus estimate, while revenue reached $64.92 million, exceeding expectations of $58.98 million.
• Shares rose 5% to $20.00 following the results, with trading volume significantly above average. The stock has a 52-week range of $9.37 to $23.15.
• The company maintained a quarterly dividend of $0.06 per share, equivalent to a 1.2% annual yield, while analyst sentiment remained mixed with a consensus rating of “Hold” and a $24 price target.

Richardson Electronics (NASDAQ:RELL - Get Free Report) posted its quarterly earnings results on Wednesday. The technology company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.18, FiscalAI reports. The business had revenue of $64.92 million during the quarter, compared to analysts' expectations of $58.98 million. Richardson Electronics had a net margin of 2.79% and a return on equity of 3.55%.

Richardson Electronics Stock Up 5.0%

NASDAQ:RELL traded up $0.95 during trading hours on Wednesday, reaching $20.00. 1,293,510 shares of the stock were exchanged, compared to its average volume of 195,876. Richardson Electronics has a twelve month low of $9.37 and a twelve month high of $23.15. The business has a 50-day moving average of $18.08 and a two-hundred day moving average of $16.50. The company has a market capitalization of $293.84 million, a price-to-earnings ratio of 45.46, a PEG ratio of 1.49 and a beta of 1.32.

Richardson Electronics Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Friday, August 7th were paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Friday, August 7th. Richardson Electronics's dividend payout ratio is 54.55%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on RELL shares. Zacks Research cut Richardson Electronics from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. Wall Street Zen upgraded Richardson Electronics from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Richardson Electronics in a research note on Monday, July 20th. Finally, Northland Securities upgraded Richardson Electronics from a "market perform" rating to an "outperform" rating and increased their price target for the stock from $14.00 to $24.00 in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $24.00.

Insider Transactions at Richardson Electronics

In other Richardson Electronics news, Director James Benham sold 3,020 shares of Richardson Electronics stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $17.99, for a total value of $54,329.80. Following the completion of the transaction, the director directly owned 19,345 shares of the company's stock, valued at $348,016.55. The trade was a 13.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Jacques Belin sold 5,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $21.46, for a total transaction of $107,300.00. Following the sale, the director owned 22,365 shares in the company, valued at $479,952.90. This trade represents a 18.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 133,585 shares of company stock worth $2,565,216. 31.65% of the stock is owned by corporate insiders.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. NASDAQ: RELL is a global provider of engineered solutions, replacement parts and specialized components for industrial, healthcare and energy markets. Founded in 1947 and headquartered in LaFox, Illinois, the company serves original equipment manufacturers, distributors and end users through a network that spans North America, Europe and Asia.

The company operates through three primary business areas. Its Power and Microwave Technologies segment supplies power semiconductors, electronic components, vacuum tubes, radio-frequency and microwave products, and related engineering services for applications including telecommunications, industrial equipment, broadcasting and defense.

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