BlackRock Inc. Makes New $18.87 Million Investment in Richardson Electronics, Ltd. $RELL

Key Points

• BlackRock acquired 992,836 shares of Richardson Electronics in the second quarter, worth approximately $18.87 million and representing a 6.82% stake. Institutional investors and hedge funds collectively own 71.95% of the company.
• Analyst sentiment is broadly positive: Richardson Electronics has an average rating of “Buy” and a consensus price target of $24, compared with a recent share price of $16.98.
• The company exceeded quarterly expectations, reporting $0.21 in EPS versus estimates of $0.07 and revenue of $66.2 million versus $55.37 million expected. It also pays a quarterly dividend of $0.06, while insiders sold more than $2.56 million in shares during the last quarter.

BlackRock Inc. bought a new position in Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 992,836 shares of the technology company's stock, valued at approximately $18,874,000. BlackRock Inc. owned about 6.82% of Richardson Electronics as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also bought and sold shares of the company. Tower Research Capital LLC TRC increased its holdings in Richardson Electronics by 298.8% in the second quarter. Tower Research Capital LLC TRC now owns 4,160 shares of the technology company's stock valued at $40,000 after buying an additional 3,117 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Richardson Electronics during the 2nd quarter valued at approximately $57,000. Los Angeles Capital Management LLC acquired a new stake in shares of Richardson Electronics during the 4th quarter valued at approximately $91,000. Engineers Gate Manager LP bought a new position in Richardson Electronics during the second quarter worth $103,000. Finally, Deutsche Bank AG lifted its stake in Richardson Electronics by 150.3% during the fourth quarter. Deutsche Bank AG now owns 11,421 shares of the technology company's stock worth $124,000 after purchasing an additional 6,858 shares during the last quarter. 71.95% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

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

Richardson Electronics Price Performance

NASDAQ:RELL opened at $16.98 on Friday. Richardson Electronics, Ltd. has a 12-month low of $9.37 and a 12-month high of $23.15. The business has a 50 day simple moving average of $18.20 and a 200 day simple moving average of $15.66. The firm has a market capitalization of $249.44 million, a P/E ratio of 38.59, a P/E/G ratio of 1.35 and a beta of 1.25.

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

Richardson Electronics Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Friday, August 7th were given a $0.06 dividend. The ex-dividend date was Friday, August 7th. This represents a $0.24 annualized dividend and a yield of 1.4%. Richardson Electronics's dividend payout ratio is 54.55%.

Insider Transactions at Richardson Electronics

In other news, Director Robert H. Kluge sold 29,000 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $17.90, for a total transaction of $519,100.00. Following the completion of the transaction, the director directly owned 51,365 shares in the company, valued at approximately $919,433.50. The trade was a 36.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Jens Ruppert sold 37,500 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $19.01, for a total value of $712,875.00. Following the completion of the transaction, the executive vice president directly owned 2,000 shares of the company's stock, valued at $38,020. This trade represents a 94.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 133,585 shares of company stock worth $2,565,216 in the last quarter. 31.65% of the stock is currently owned by corporate insiders.

About Richardson Electronics

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.

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