Richardson Electronics (NASDAQ:RELL) Share Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Richardson Electronics shares crossed above their 200-day moving average, reaching $16.60 and last trading at $16.59, compared with the $15.99 moving average.
• Analyst sentiment is broadly positive: the stock has a consensus “Buy” rating and a $24.00 price target, following multiple recent upgrades.
• The company beat quarterly expectations, reporting $0.21 in earnings per share versus a $0.07 estimate and revenue of $66.20 million versus a $55.37 million consensus forecast. It also declared a $0.06 quarterly dividend, equivalent to a 1.4% yield.

Richardson Electronics, Ltd. (NASDAQ:RELL - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $15.99 and traded as high as $16.60. Richardson Electronics shares last traded at $16.59, with a volume of 112,684 shares traded.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Zacks Research upgraded shares of Richardson Electronics from a "hold" rating to a "strong-buy" rating in a report on Friday, July 24th. Northland Securities raised Richardson Electronics from a "market perform" rating to an "outperform" rating and increased their price target for the company from $14.00 to $24.00 in a report on Tuesday, July 28th. Wall Street Zen upgraded Richardson Electronics from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Richardson Electronics in a report on Monday, July 20th. 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's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of $24.00.

Richardson Electronics Stock Performance

The firm has a market capitalization of $243.71 million, a P/E ratio of 37.71, a price-to-earnings-growth ratio of 1.27 and a beta of 1.25. The business has a fifty day moving average of $18.09 and a 200-day moving average of $15.99.

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

Richardson Electronics Dividend Announcement

The firm also recently declared 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 payout ratio is 54.55%.

Insider Activity

In other news, COO Wendy Diddell sold 23,901 shares of the business's 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 transaction, the chief operating officer directly owned 114,150 shares in the company, valued at $2,283,000. The trade was a 17.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jacques Belin sold 5,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $21.46, for a total value of $107,300.00. Following the completion of the transaction, the director directly owned 22,365 shares in the company, valued at approximately $479,952.90. The trade was a 18.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 133,585 shares of company stock worth $2,565,216. 31.65% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Hsbc Holdings PLC bought a new stake in shares of Richardson Electronics during the 2nd quarter worth $208,000. Deutsche Bank AG acquired a new position in Richardson Electronics during the 2nd quarter worth $230,000. Granite Investment Partners LLC bought a new stake in Richardson Electronics during the first quarter valued at about $143,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Richardson Electronics in the second quarter valued at about $293,000. Finally, Globeflex Capital L P increased its stake in shares of Richardson Electronics by 36.4% in the fourth quarter. Globeflex Capital L P now owns 16,327 shares of the technology company's stock worth $178,000 after purchasing an additional 4,355 shares during the period. Institutional investors own 71.95% of the company's stock.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. NASDAQ: RELL is a global provider of engineered solutions, electronic components and replacement parts for industrial, healthcare, aviation and other specialized markets. The company serves original equipment manufacturers, maintenance providers and end users through its technical expertise, product distribution capabilities and customized engineering services.

Its business is organized around several principal areas. Richardson Healthcare supplies replacement parts and components for medical imaging systems, including ultrasound transducers and other products used in diagnostic imaging equipment.

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