Richardson Electronics, Ltd. $RELL Position Lessened by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors reduced its Richardson Electronics stake by 7.6% in the first quarter, selling 59,237 shares and retaining 715,503 shares valued at approximately $7.84 million. Institutional investors collectively own 71.95% of the company.
• Richardson Electronics reported quarterly earnings of $0.21 per share, well above the $0.07 consensus estimate, while revenue of $66.2 million also exceeded expectations. The company declared a quarterly dividend of $0.06 per share, representing a 1.2% annualized yield.
• Analyst sentiment improved, with Northland Securities upgrading the stock to “outperform” and raising its price target to $24, while Zacks upgraded it to “strong buy.” However, company insiders sold 135,701 shares worth about $2.6 million over the past 90 days.

Dimensional Fund Advisors LP lowered its stake in shares of Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) by 7.6% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 715,503 shares of the technology company's stock after selling 59,237 shares during the quarter. Dimensional Fund Advisors LP owned approximately 4.92% of Richardson Electronics worth $7,835,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in RELL. State Street Corp lifted its position in Richardson Electronics by 1.9% in the 4th quarter. State Street Corp now owns 243,427 shares of the technology company's stock valued at $2,648,000 after purchasing an additional 4,629 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC bought a new position in Richardson Electronics in the 1st quarter worth about $1,095,000. Bank of New York Mellon Corp increased its stake in shares of Richardson Electronics by 6.3% in the first quarter. Bank of New York Mellon Corp now owns 92,426 shares of the technology company's stock valued at $1,012,000 after purchasing an additional 5,506 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Richardson Electronics by 7.3% during the first quarter. Goldman Sachs Group Inc. now owns 85,081 shares of the technology company's stock valued at $950,000 after buying an additional 5,802 shares during the last quarter. Finally, Acadian Asset Management LLC grew its holdings in Richardson Electronics by 17.0% in the 1st quarter. Acadian Asset Management LLC now owns 83,273 shares of the technology company's stock worth $928,000 after buying an additional 12,097 shares in the last quarter. 71.95% of the stock is currently owned by institutional investors.

Richardson Electronics Stock Down 3.7%

Shares of RELL stock opened at $19.89 on Tuesday. The stock has a 50-day simple moving average of $17.92 and a 200 day simple moving average of $14.87. The stock has a market capitalization of $292.18 million, a P/E ratio of 45.21, a P/E/G ratio of 1.64 and a beta of 1.28. 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 EPS for the quarter, topping the consensus estimate of $0.07 by $0.14. The firm had revenue of $66.20 million for the quarter, compared to analysts' expectations of $55.37 million. Richardson Electronics had a net margin of 2.79% and a return on equity of 3.55%. On average, sell-side analysts anticipate that Richardson Electronics, Ltd. will post 0.5 earnings per share for the current year.

Richardson Electronics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 26th. Investors of record on Friday, August 7th will be issued 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 is Friday, August 7th. Richardson Electronics's dividend payout ratio (DPR) is presently 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 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 sale, the director directly owned 51,365 shares of the company's stock, valued at $919,433.50. The trade was a 36.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Robert J. Ben sold 9,000 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $21.61, for a total value of $194,490.00. Following the sale, the chief financial officer directly owned 60,534 shares of the company's stock, valued at approximately $1,308,139.74. This represents a 12.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 135,701 shares of company stock valued at $2,596,497 in the last 90 days. 33.40% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

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

Richardson Electronics 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.

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