Richardson Electronics (NASDAQ:RELL) Announces Quarterly Earnings Results

Key Points

• Richardson Electronics beat expectations in its quarterly results, reporting EPS of $0.21 versus the $0.07 consensus estimate and revenue of $66.2 million versus $55.37 million expected.
• The stock rose on the news, trading up to $18.01 on Wednesday with volume well above average; it remains near its 52-week high of $19.86.
• Despite the earnings beat, Wall Street’s stance is still cautious, with analysts assigning a Hold rating and a consensus target price of $14.00.

Richardson Electronics (NASDAQ:RELL - Get Free Report) announced its quarterly earnings results on Wednesday. The technology company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.07 by $0.14, FiscalAI reports. The firm had revenue of $66.20 million during the quarter, compared to the consensus estimate of $55.37 million. Richardson Electronics had a net margin of 1.75% and a return on equity of 2.83%.

Richardson Electronics Stock Performance

RELL traded up $0.83 on Wednesday, reaching $18.01. The company had a trading volume of 462,588 shares, compared to its average volume of 176,616. Richardson Electronics has a 52-week low of $9.37 and a 52-week high of $19.86. The company has a market cap of $262.23 million, a price-to-earnings ratio of 66.71, a P/E/G ratio of 1.70 and a beta of 1.26. The business has a 50 day simple moving average of $17.26 and a 200 day simple moving average of $14.02.

Insider Buying and Selling

In other news, EVP Kathleen Mcnally sold 6,636 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $16.85, for a total value of $111,816.60. Following the transaction, the executive vice president owned 45,719 shares of the company's stock, valued at $770,365.15. This represents a 12.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Kenneth Halverson sold 10,000 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $14.69, for a total transaction of $146,900.00. Following the completion of the transaction, the director directly owned 14,345 shares in the company, valued at $210,728.05. The trade was a 41.08% decrease in their position. The disclosure for this sale is available in the SEC filing. 33.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Richardson Electronics

Large investors have recently added to or reduced their stakes in the company. American Century Companies Inc. boosted its holdings in shares of Richardson Electronics by 57.0% in the 2nd quarter. American Century Companies Inc. now owns 42,673 shares of the technology company's stock worth $412,000 after purchasing an additional 15,501 shares in the last quarter. O Shaughnessy Asset Management LLC increased its position in shares of Richardson Electronics by 22.4% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 33,266 shares of the technology company's stock valued at $362,000 after purchasing an additional 6,093 shares during the last quarter. Rhumbline Advisers raised its holdings in shares of Richardson Electronics by 50.6% during the 2nd quarter. Rhumbline Advisers now owns 27,019 shares of the technology company's stock valued at $261,000 after buying an additional 9,073 shares in the last quarter. Aristides Capital LLC raised its holdings in shares of Richardson Electronics by 4.7% during the 4th quarter. Aristides Capital LLC now owns 20,940 shares of the technology company's stock valued at $228,000 after buying an additional 940 shares in the last quarter. Finally, Empowered Funds LLC lifted its position in Richardson Electronics by 9.0% in the 4th quarter. Empowered Funds LLC now owns 19,142 shares of the technology company's stock worth $208,000 after buying an additional 1,587 shares during the last quarter. Hedge funds and other institutional investors own 71.95% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RELL. Weiss Ratings reiterated a "hold (c)" rating on shares of Richardson Electronics in a research report on Monday. Northland Securities set a $14.00 target price on Richardson Electronics in a research report on Friday, April 10th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $14.00.

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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