AIGH Capital Management LLC Makes New Investment in Richardson Electronics, Ltd. $RELL

Key Points

• AIGH Capital Management initiated a 200,434-share position in Richardson Electronics worth approximately $3.81 million, representing about 1.38% of the company. Institutional investors collectively own 71.95% of the stock.
• Analyst sentiment has improved, with upgrades from Wall Street Zen, Zacks Research and Northland Securities; the stock carries a consensus “Buy” rating and a $24 price target.
• Richardson Electronics exceeded quarterly expectations, reporting $0.21 in EPS versus a $0.07 estimate and $66.2 million in revenue versus $55.37 million expected. The company also declared a quarterly dividend of $0.06 per share, while insiders sold roughly $2.6 million of stock over the past three months.

AIGH Capital Management LLC purchased a new stake in Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 200,434 shares of the technology company's stock, valued at approximately $3,810,000. AIGH Capital Management LLC owned about 1.38% of Richardson Electronics at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the company. Goldman Sachs Group Inc. increased its position in Richardson Electronics by 7.3% during the first quarter. Goldman Sachs Group Inc. now owns 85,081 shares of the technology company's stock worth $950,000 after buying an additional 5,802 shares during the period. Jane Street Group LLC purchased a new position in shares of Richardson Electronics during the first quarter worth approximately $198,000. Acadian Asset Management LLC grew its position in shares of Richardson Electronics by 17.0% during the first quarter. Acadian Asset Management LLC now owns 83,273 shares of the technology company's stock worth $928,000 after acquiring an additional 12,097 shares during the last quarter. Rhumbline Advisers increased its holdings in shares of Richardson Electronics by 50.6% in the 2nd quarter. Rhumbline Advisers now owns 27,019 shares of the technology company's stock valued at $261,000 after acquiring an additional 9,073 shares during the period. Finally, American Century Companies Inc. increased its holdings in shares of Richardson Electronics by 57.0% in the 2nd quarter. American Century Companies Inc. now owns 42,673 shares of the technology company's stock valued at $412,000 after acquiring an additional 15,501 shares during the period. Hedge funds and other institutional investors own 71.95% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on RELL shares. Weiss Ratings reissued a "hold (c)" rating on shares of Richardson Electronics in a research report on Monday, July 20th. Wall Street Zen upgraded shares of Richardson Electronics from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Zacks Research raised Richardson Electronics from a "hold" rating to a "strong-buy" rating in a report on Friday, July 24th. Finally, Northland Securities upgraded Richardson Electronics from a "market perform" rating to an "outperform" rating and boosted their price target for the company from $14.00 to $24.00 in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Richardson Electronics currently has an average rating of "Buy" and a consensus target price of $24.00.

Insider Activity

In other Richardson Electronics news, COO Wendy Diddell sold 23,901 shares of the stock in a transaction 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 in the company, valued at approximately $2,283,000. This represents a 17.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Robert J. Ben sold 9,000 shares of the stock in a transaction 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 completion of the transaction, the chief financial officer owned 60,534 shares of the company's stock, valued at $1,308,139.74. The trade was a 12.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 135,701 shares of company stock valued at $2,596,497 over the last three months. 33.40% of the stock is currently owned by corporate insiders.

Richardson Electronics Price Performance

Shares of NASDAQ:RELL opened at $20.34 on Monday. The company has a market cap of $298.79 million, a price-to-earnings ratio of 46.23, a PEG ratio of 1.61 and a beta of 1.28. The firm's 50-day simple moving average is $18.19 and its 200-day simple moving average is $15.13. Richardson Electronics, Ltd. has a fifty-two week low of $9.37 and a fifty-two week high of $23.15.

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

Richardson Electronics Announces Dividend

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

Richardson Electronics Company Profile

Richardson Electronics, Ltd. NASDAQ: RELL is a global manufacturer, distributor and servicer of engineered components and subsystems for a diverse range of industrial, medical and scientific applications. The company specializes in vacuum electron devices, high-voltage power supplies and related electronic components, offering klystrons, traveling wave tubes, magnetrons, X-ray tubes, microwave amplifiers and power conversion products. Its solutions support customers in power grid management, semiconductor processing, medical imaging, scientific instrumentation and telecommunications.

In addition to its manufacturing capabilities, Richardson Electronics maintains a broad distribution network comprising thousands of standard and custom parts.

Want to see what other hedge funds are holding RELL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source