Richardson Electronics (NASDAQ:RELL) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Richardson Electronics from “hold” to “buy,” while Zacks Research raised its view to “strong buy” and Northland Securities upgraded the stock to “outperform” with a $24 price target. The overall analyst consensus is “Buy” with a $24 target.
• Richardson Electronics reported quarterly earnings of $0.21 per share, exceeding the $0.07 consensus estimate, while revenue of $66.2 million also surpassed expectations of $55.37 million.
• The stock opened at $20.66 and has traded between $9.37 and $23.15 over the past year. Insiders have sold roughly $2.6 million of shares over the past 90 days, while institutional investors own 71.95% of the company.

Richardson Electronics (NASDAQ:RELL - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Other equities analysts have also issued research reports about the company. 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 research note on Monday, July 20th. Finally, Northland Securities raised Richardson Electronics from a "market perform" rating to an "outperform" rating and boosted their price target for the stock from $14.00 to $24.00 in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $24.00.

Richardson Electronics Stock Performance

RELL opened at $20.66 on Friday. Richardson Electronics has a fifty-two week low of $9.37 and a fifty-two week high of $23.15. The firm's fifty day moving average is $17.85 and its 200 day moving average is $14.77. The stock has a market cap of $300.81 million, a price-to-earnings ratio of 46.96, a price-to-earnings-growth ratio of 1.64 and a beta of 1.28.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The technology company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.14. The company 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 2.79% and a return on equity of 3.55%. On average, equities research analysts predict that Richardson Electronics will post 0.5 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Paul J. Plante sold 17,000 shares of Richardson Electronics stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $18.81, for a total value of $319,770.00. Following the sale, the director directly owned 14,188 shares of the company's stock, valued at approximately $266,876.28. The trade was a 54.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Robert J. Ben sold 9,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $21.61, for a total value of $194,490.00. Following the completion of the sale, the chief financial officer owned 60,534 shares in the company, valued at $1,308,139.74. This represents a 12.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 135,701 shares of company stock worth $2,596,497. 33.40% of the stock is owned by corporate insiders.

Institutional Trading of Richardson Electronics

Hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. grew its holdings in shares of Richardson Electronics by 7.3% in the first quarter. Goldman Sachs Group Inc. now owns 85,081 shares of the technology company's stock valued at $950,000 after purchasing an additional 5,802 shares in the last quarter. Jane Street Group LLC bought a new stake in Richardson Electronics in the first quarter worth $198,000. Acadian Asset Management LLC raised its stake in Richardson Electronics by 17.0% during the first quarter. Acadian Asset Management LLC now owns 83,273 shares of the technology company's stock valued at $928,000 after purchasing an additional 12,097 shares in the last quarter. Rhumbline Advisers raised its stake in Richardson Electronics by 50.6% during the second quarter. Rhumbline Advisers now owns 27,019 shares of the technology company's stock valued at $261,000 after purchasing an additional 9,073 shares in the last quarter. Finally, American Century Companies Inc. lifted its position in Richardson Electronics by 57.0% during the second quarter. American Century Companies Inc. now owns 42,673 shares of the technology company's stock valued at $412,000 after purchasing an additional 15,501 shares during the last quarter. 71.95% of the stock is owned by hedge funds and other institutional investors.

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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