Richardson Electronics (NASDAQ:RELL) Share Price Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Richardson Electronics shares crossed above their 200-day moving average, reaching $19.00 before last trading at $17.50; the stock remains down 11.2% and has a market capitalization of about $260.4 million.
• Analyst sentiment is moderately bullish, with two Buy ratings and one Hold rating and an average price target of $26.00. However, insiders have sold 133,585 shares worth approximately $2.6 million over the past 90 days.
• The company exceeded quarterly expectations, reporting $0.27 in earnings per share versus a $0.09 consensus estimate and revenue of $64.92 million versus $58.98 million expected. Richardson Electronics also declared a quarterly dividend of $0.06 per share, representing a 1.4% annualized yield.

Richardson Electronics, Ltd. (NASDAQ:RELL - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $17.21 and traded as high as $19.00. Richardson Electronics shares last traded at $17.50, with a volume of 261,122 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Wall Street Zen upgraded shares of Richardson Electronics from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Northland Securities set a $26.00 target price on shares of Richardson Electronics in a research note on Tuesday, October 13th. Weiss Ratings upgraded shares of Richardson Electronics from a "hold (c)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Finally, Zacks Research cut Richardson Electronics from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $26.00.

Richardson Electronics Trading Down 11.2%

The stock has a market cap of $260.40 million, a price-to-earnings ratio of 30.17, a P/E/G ratio of 1.01 and a beta of 1.32. The stock's 50-day moving average price is $18.04 and its 200-day moving average price is $17.21.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last announced its earnings results 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. Richardson Electronics had a net margin of 3.57% and a return on equity of 4.82%. The business had revenue of $64.92 million during the quarter, compared to the consensus estimate of $58.98 million. As a group, analysts predict that Richardson Electronics, Ltd. will post 0.78 earnings per share for the current year.

Richardson Electronics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 6th will be given a dividend of $0.06 per share. The ex-dividend date is Friday, November 6th. This represents a $0.24 annualized dividend and a dividend yield of 1.4%. Richardson Electronics's dividend payout ratio is presently 41.38%.

Insider Buying and Selling at Richardson Electronics

In related news, CFO Robert Ben sold 9,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $21.61, for a total transaction of $194,490.00. Following the completion of the sale, the chief financial officer owned 60,534 shares of the company's stock, valued at $1,308,139.74. This trade represents a 12.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Kenneth Halverson sold 1,500 shares of Richardson Electronics stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $17.47, for a total value of $26,205.00. Following the completion of the sale, the director owned 10,865 shares of the company's stock, valued at approximately $189,811.55. The trade was a 12.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 133,585 shares of company stock valued at $2,565,216 over the last ninety days. Insiders own 31.65% of the company's stock.

Institutional Trading of Richardson Electronics

Hedge funds have recently modified their holdings of the stock. Hsbc Holdings PLC bought a new position in Richardson Electronics during the second quarter worth $208,000. Deutsche Bank AG bought a new position in Richardson Electronics in the second quarter worth approximately $230,000. Granite Investment Partners LLC bought a new stake in shares of Richardson Electronics during the first quarter valued at approximately $143,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Richardson Electronics during the second quarter worth approximately $293,000. Finally, Empowered Funds LLC raised its position in shares of Richardson Electronics by 7.6% during the first quarter. Empowered Funds LLC now owns 20,596 shares of the technology company's stock worth $226,000 after purchasing an additional 1,454 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, 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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