RELL FY2027 EPS Forecast Boosted by Northland Securities

Key Points

• Northland Securities raised Richardson Electronics’ FY2027 EPS forecast to $0.62 from $0.39 and maintained an “Outperform” rating with a $24 price target. It also projects FY2028 EPS of $0.87.
• Richardson Electronics recently reported quarterly EPS of $0.21, beating the $0.07 consensus estimate, while revenue of $66.2 million exceeded expectations of $55.37 million.
• The stock opened at $16.69 and trades at roughly 38 times earnings, creating valuation risk despite the bullish outlook. The company also announced a quarterly dividend of $0.06 per share, yielding about 1.4% annually.

Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) - Research analysts at Northland Securities lifted their FY2027 earnings per share (EPS) estimates for Richardson Electronics in a research note issued on Tuesday, July 28th. Northland Securities analyst B. Brooks now expects that the technology company will post earnings of $0.62 per share for the year, up from their previous forecast of $0.39. Northland Securities has a "Outperform" rating and a $24.00 price objective on the stock. The consensus estimate for Richardson Electronics' current full-year earnings is $0.39 per share. Northland Securities also issued estimates for Richardson Electronics' Q4 2027 earnings at $0.27 EPS, Q3 2028 earnings at $0.22 EPS, Q4 2028 earnings at $0.30 EPS and FY2028 earnings at $0.87 EPS.

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 3.57% and a net margin of 2.79%.The company had revenue of $66.20 million for the quarter, compared to the consensus estimate of $55.37 million.

Other research analysts have also recently issued reports about the stock. Zacks Research raised shares of Richardson Electronics from a "hold" rating to a "strong-buy" rating in a report on Friday, July 24th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Richardson Electronics in a report on Monday, July 20th. One equities 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. Based on data from MarketBeat, Richardson Electronics has an average rating of "Buy" and a consensus target price of $24.00.

Richardson Electronics Stock Performance

RELL stock opened at $16.69 on Thursday. Richardson Electronics has a one year low of $9.37 and a one year high of $23.15. The stock has a market capitalization of $243.01 million, a PE ratio of 37.93, a price-to-earnings-growth ratio of 1.92 and a beta of 1.26. The company has a fifty day moving average of $17.51 and a 200-day moving average of $14.34.

Institutional Trading of Richardson Electronics

Institutional investors and hedge funds have recently made changes to their positions in the stock. Annis Gardner Whiting Capital Advisors LLC acquired a new position in Richardson Electronics in the first quarter valued at $1,095,000. First Wilshire Securities Management Inc. lifted its stake in shares of Richardson Electronics by 13.9% in the first quarter. First Wilshire Securities Management Inc. now owns 671,998 shares of the technology company's stock worth $7,358,000 after acquiring an additional 82,054 shares in the last quarter. Lazard Asset Management LLC bought a new stake in shares of Richardson Electronics in the first quarter worth $697,000. Marshall Wace LLP acquired a new stake in shares of Richardson Electronics in the 4th quarter valued at about $626,000. Finally, Walleye Capital LLC bought a new position in Richardson Electronics during the 4th quarter worth approximately $497,000. 71.95% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, EVP Kathleen Mcnally sold 6,636 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $16.85, for a total transaction of $111,816.60. Following the transaction, the executive vice president directly owned 45,719 shares of the company's stock, valued at $770,365.15. This represents a 12.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Kenneth Halverson sold 10,000 shares of the company's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $14.69, for a total transaction of $146,900.00. Following the transaction, the director owned 14,345 shares in the company, valued at $210,728.05. The trade was a 41.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 33.40% of the company's stock.

Richardson Electronics Dividend Announcement

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

Richardson Electronics News Roundup

Here are the key news stories impacting Richardson Electronics this week:

• Positive Sentiment: Northland Securities upgraded Richardson Electronics from “Market Perform” to “Outperform” and raised its price target to $24 from $14. Based on the referenced $16.69 share price, the target implies substantial potential upside. Richardson Electronics Stock Rating Upgraded by Northland Securities
• Positive Sentiment: The analyst significantly increased its FY2027 EPS forecast to $0.62 from $0.39 and raised its Q4 2027 estimate to $0.27 from $0.07. Northland also projects $0.87 in FY2028 EPS, suggesting expectations for strong earnings growth.
• Positive Sentiment: Northland’s forward quarterly estimates range from $0.09 to $0.30 per share through fiscal 2028, supporting the firm’s constructive long-term outlook and $24 price objective.
• Neutral Sentiment: The estimate changes largely repeat the same Northland research note rather than representing new company operating results. The current-year consensus remains $0.39 EPS.
• Negative Sentiment: Northland lowered its Q1 2027 EPS forecast to $0.09 from $0.11, partially offsetting the increases to later-period estimates.
• Negative Sentiment: At approximately $16.69, Richardson Electronics trades at about 38 times earnings, leaving the shares vulnerable to selling if investors view the bullish outlook as already reflected in the price. The company’s modest 2.79% net margin also highlights execution risk.

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.

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