Richardson Electronics (NASDAQ:RELL) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Richardson Electronics reported earnings of $0.13 per share, exceeding estimates by $0.11, with a positive return on equity of 2.07% despite a negative net margin of 0.55%.
• The company also declared a quarterly dividend of $0.06, resulting in a 2.3% dividend yield and a payout ratio of -300%.
• Major institutional investors have increased their positions in Richardson Electronics, with 71.95% of the stock currently owned by hedge funds and institutional investors.

Richardson Electronics (NASDAQ:RELL - Get Free Report) issued its quarterly earnings data on Wednesday. The technology company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.11, Zacks reports. Richardson Electronics had a positive return on equity of 2.07% and a negative net margin of 0.55%.

Richardson Electronics Stock Performance

Shares of Richardson Electronics stock traded up $0.77 on Wednesday, hitting $10.61. The company's stock had a trading volume of 295,489 shares, compared to its average volume of 51,524. Richardson Electronics has a 1 year low of $7.57 and a 1 year high of $15.51. The firm has a fifty day moving average price of $9.81 and a 200-day moving average price of $9.59. The company has a market capitalization of $153.74 million, a price-to-earnings ratio of -132.61, a price-to-earnings-growth ratio of 2.33 and a beta of 0.97.

Richardson Electronics Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 27th. Investors of record on Friday, August 8th were paid a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, August 8th. Richardson Electronics's payout ratio is currently -300.00%.

Insider Buying and Selling at Richardson Electronics

In other Richardson Electronics news, EVP Kathleen Mcnally sold 8,417 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $10.01, for a total transaction of $84,254.17. Following the completion of the sale, the executive vice president directly owned 45,719 shares in the company, valued at approximately $457,647.19. The trade was a 15.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 33.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Richardson Electronics

Several large investors have recently bought and sold shares of RELL. Goldman Sachs Group Inc. increased its stake in Richardson Electronics by 7.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 85,081 shares of the technology company's stock worth $950,000 after buying an additional 5,802 shares in the last quarter. Jane Street Group LLC purchased a new stake in shares of Richardson Electronics in the first quarter valued at approximately $198,000. Acadian Asset Management LLC grew its position in shares of Richardson Electronics by 17.0% in 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 grew its position in shares of Richardson Electronics by 50.6% in 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. grew its position in shares of Richardson Electronics by 57.0% in 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 in the last quarter. 71.95% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a "sell (d+)" rating on shares of Richardson Electronics in a report on Wednesday. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Richardson Electronics currently has a consensus rating of "Reduce".

Richardson Electronics Company Profile

Richardson Electronics, Ltd. engages in the provision of engineered solutions, power grid and microwave tube, and related consumables worldwide. The Power and Microwave Technologies segment manufactures electron tubes and radio frequency (RF), microwave and power components used in semiconductor manufacturing equipment, RF, and wireless and industrial power applications, as well as various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology.

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