Sidoti Raises Earnings Estimates for Richardson Electronics

Key Points

• Sidoti raised Richardson Electronics’ FY2027 EPS estimate to $0.68 from $0.39, above the current consensus of $0.50, and projected FY2028 EPS of $0.86.
• Richardson Electronics reported quarterly EPS of $0.27, exceeding analysts’ $0.09 estimate, while revenue of $64.92 million also topped expectations of $58.98 million.
• Analyst sentiment remains positive, with the stock carrying a “Moderate Buy” consensus rating and a $24 average price target; institutional investors own 71.95% of shares, while insiders have recently sold stock.

Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) - Sidoti increased their FY2027 earnings per share (EPS) estimates for Richardson Electronics in a report released on Friday, October 9th. Sidoti analyst A. Soderstrom now anticipates that the technology company will post earnings of $0.68 per share for the year, up from their previous forecast of $0.39. The consensus estimate for Richardson Electronics' current full-year earnings is $0.50 per share. Sidoti also issued estimates for Richardson Electronics' FY2028 earnings at $0.86 EPS.

RELL has been the topic of several other reports. Zacks Research lowered shares of Richardson Electronics from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. Weiss Ratings raised shares of Richardson Electronics from a "hold (c)" rating to a "buy (b-)" rating in a research note on Thursday. Wall Street Zen upgraded Richardson Electronics from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Northland Securities upgraded Richardson Electronics from a "market perform" rating to an "outperform" rating and upped their target price for the stock from $14.00 to $24.00 in a report on Tuesday, July 28th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $24.00.

Richardson Electronics Stock Performance

NASDAQ:RELL opened at $20.74 on Tuesday. Richardson Electronics has a one year low of $9.37 and a one year high of $23.15. The firm has a market cap of $304.71 million, a P/E ratio of 35.76, a P/E/G ratio of 1.65 and a beta of 1.32. The firm has a 50-day simple moving average of $18.25 and a 200-day simple moving average of $16.76.

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

Hedge Funds Weigh In On Richardson Electronics

Institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Richardson Electronics during the 2nd quarter valued at $18,874,000. First Wilshire Securities Management Inc. grew its stake in Richardson Electronics by 13.9% during 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 last quarter. AIGH Capital Management LLC purchased a new position in Richardson Electronics during the 2nd quarter worth $3,810,000. Bank of New York Mellon Corp acquired a new position in Richardson Electronics during the 2nd quarter valued at about $1,995,000. Finally, Annis Gardner Whiting Capital Advisors LLC acquired a new position in Richardson Electronics during the 1st quarter valued at about $1,095,000. 71.95% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Richardson Electronics

In related news, Director Robert H. Kluge sold 29,000 shares of the stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $17.90, for a total transaction of $519,100.00. Following the completion of the sale, the director owned 51,365 shares of the company's stock, valued at $919,433.50. This represents a 36.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Wendy Diddell sold 23,901 shares of the stock in a transaction that occurred 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 sale, the chief operating officer directly owned 114,150 shares of the company's stock, valued at $2,283,000. The trade was a 17.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, 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 Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Friday, November 6th will be issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, November 6th. Richardson Electronics's dividend payout ratio (DPR) is currently 41.38%.

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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