Northland Securities Has Strong Outlook for RELL Q2 Earnings

Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) - Northland Securities increased their Q2 2027 earnings per share estimates for Richardson Electronics in a report released on Tuesday, October 13th. Northland Securities analyst B. Brooks now forecasts that the technology company will post earnings of $0.16 per share for the quarter, up from their prior forecast of $0.11. The consensus estimate for Richardson Electronics' current full-year earnings is $0.65 per share. Northland Securities also issued estimates for Richardson Electronics' Q3 2027 earnings at $0.16 EPS, Q4 2027 earnings at $0.29 EPS, Q2 2028 earnings at $0.23 EPS and FY2028 earnings at $1.02 EPS.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last posted its quarterly earnings data on Wednesday, October 7th. The technology company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.18. The company had revenue of $64.92 million during the quarter, compared to analysts' expectations of $58.98 million. Richardson Electronics had a return on equity of 4.82% and a net margin of 3.57%.

Several other equities analysts have also recently commented on RELL. Zacks Research cut shares of Richardson Electronics from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. 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, Wall Street Zen upgraded shares of Richardson Electronics from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $26.00.

Richardson Electronics Trading Up 2.6%

Shares of RELL stock opened at $21.28 on Wednesday. Richardson Electronics has a 1 year low of $9.37 and a 1 year high of $23.15. The firm's fifty day simple moving average is $18.25 and its 200 day simple moving average is $16.82. The firm has a market capitalization of $312.60 million, a P/E ratio of 38.41, a price-to-earnings-growth ratio of 1.28 and a beta of 1.32.

Richardson Electronics Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Friday, November 6th will be given a dividend of $0.06 per share. The ex-dividend date is Friday, November 6th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.1%. Richardson Electronics's payout ratio is currently 41.38%.

Insiders Place Their Bets

In other Richardson Electronics news, Director Robert H. Kluge sold 29,000 shares of the business's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $17.90, for a total value of $519,100.00. Following the sale, the director owned 51,365 shares of the company's stock, valued at $919,433.50. The trade was a 36.09% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, COO Wendy Diddell sold 23,901 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $20.00, for a total transaction 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 approximately $2,283,000. This represents a 17.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 133,585 shares of company stock valued at $2,565,216 in the last ninety days. 31.65% of the stock is currently owned by insiders.

Institutional Trading of Richardson Electronics

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Annis Gardner Whiting Capital Advisors LLC bought a new stake in shares of Richardson Electronics in the 1st quarter valued at approximately $1,095,000. BlackRock Inc. bought a new position in shares of Richardson Electronics during the 2nd quarter worth approximately $18,874,000. Lazard Asset Management LLC acquired a new stake in Richardson Electronics in the 1st quarter valued at $697,000. First Wilshire Securities Management Inc. boosted its stake 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 valued at $7,358,000 after buying an additional 82,054 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Richardson Electronics in the 2nd quarter valued at $1,995,000. Institutional investors own 71.95% of the company's stock.

Key Stories Impacting Richardson Electronics

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

• Positive Sentiment: Northland Securities raised its price target to $26 and maintained a Buy rating, citing Richardson Electronics’ strong backlog, margin improvement and battery energy storage system (BESS) pipeline. The higher target implies additional upside from recent trading levels. Northland Securities price target and rating article
• Positive Sentiment: Northland raised multiple future EPS forecasts. Its estimates increased to $0.16 from $0.11 for Q2 2027, $0.16 from $0.15 for Q3 2027, $0.29 from $0.27 for Q4 2027, and $0.23 from $0.19 for Q2 2028. The firm also lifted FY2028 EPS to $1.02 from $0.87, signaling stronger expected profitability.
• Positive Sentiment: Sidoti also substantially increased its earnings outlook, raising FY2027 EPS to $0.68 from $0.39 and FY2028 EPS to $0.86 from $0.61. The upward revisions reinforce the view that Richardson’s growth could accelerate beyond the current year. Richardson Electronics analyst estimates
• Positive Sentiment: Richardson Electronics and ComEd announced an expansion of locally produced BESS manufacturing and plans for the company’s first onsite demonstration project, described as Illinois’ largest commercial battery energy storage system. The initiative could improve the company’s positioning in grid reliability and renewable-energy infrastructure. ComEd and Richardson Electronics battery storage announcement
• Neutral Sentiment: Richardson Electronics has gained 9.48% over the past week, indicating strong momentum, although momentum-based investing does not by itself confirm the company’s long-term valuation or execution prospects. Zacks Richardson Electronics momentum article

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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