Richardson Electronics (NASDAQ:RELL) Shares Pass Above 200 Day Moving Average - Here's What Happened

Key Points

• Richardson Electronics stock crossed above its 200‑day moving average (200‑day = $11.38), trading as high as $14.00 and last at $13.80, with the 50‑day at $12.25 — a short‑term technical uptick.
• Analyst sentiment is cautious: MarketBeat shows a consensus rating of "Reduce" with a $14.00 consensus target and mixed individual ratings (one Hold, one Sell).
• The company beat quarterly estimates (EPS $0.07 vs. $0.05; revenue $55.47M vs. $53.13M), announced a quarterly dividend of $0.06 (annualized yield 1.7%), but insiders have sold shares recently (36,000 shares sold in 90 days).

Richardson Electronics, Ltd. (NASDAQ:RELL - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $11.38 and traded as high as $14.00. Richardson Electronics shares last traded at $13.80, with a volume of 92,262 shares.

Wall Street Analysts Forecast Growth

Several research analysts have commented on RELL shares. Weiss Ratings reiterated a "sell (d+)" rating on shares of Richardson Electronics in a report on Wednesday, April 8th. Northland Securities set a $14.00 price target on shares of Richardson Electronics in a research report on Friday, April 10th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $14.00.

Richardson Electronics Trading Up 1.0%

The stock has a 50-day simple moving average of $12.25 and a 200 day simple moving average of $11.38. The stock has a market capitalization of $200.93 million, a price-to-earnings ratio of 51.11, a price-to-earnings-growth ratio of 2.14 and a beta of 1.13.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last issued its earnings results on Wednesday, April 8th. The technology company reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.05 by $0.02. Richardson Electronics had a return on equity of 2.83% and a net margin of 1.75%.The company had revenue of $55.47 million for the quarter, compared to the consensus estimate of $53.13 million. Sell-side analysts expect that Richardson Electronics, Ltd. will post 0.25 earnings per share for the current fiscal year.

Richardson Electronics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Friday, May 8th will be paid a dividend of $0.06 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.7%. Richardson Electronics's dividend payout ratio (DPR) is 88.89%.

Insider Activity

In other Richardson Electronics news, Director Kenneth Halverson sold 10,000 shares of the company's stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $13.09, for a total value of $130,900.00. Following the transaction, the director directly owned 14,345 shares of the company's stock, valued at $187,776.05. This represents a 41.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Robert J. Ben sold 5,000 shares of the firm's stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $11.90, for a total value of $59,500.00. Following the sale, the chief financial officer directly owned 57,034 shares of the company's stock, valued at $678,704.60. This trade represents a 8.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 36,000 shares of company stock worth $447,890 in the last ninety days. Corporate insiders own 33.40% of the company's stock.

Institutional Trading of Richardson Electronics

A number of institutional investors have recently added to or reduced their stakes in RELL. Goldman Sachs Group Inc. raised its stake in shares of Richardson Electronics by 7.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 85,081 shares of the technology company's stock valued at $950,000 after acquiring an additional 5,802 shares in the last quarter. Jane Street Group LLC acquired a new stake in shares of Richardson Electronics in the first quarter valued at about $198,000. Acadian Asset Management LLC increased its stake 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 worth $928,000 after purchasing an additional 12,097 shares during the period. Rhumbline Advisers increased its stake 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 worth $261,000 after purchasing an additional 9,073 shares during the period. Finally, American Century Companies Inc. lifted its position in shares of Richardson Electronics by 57.0% during 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 during the last quarter. 71.95% of the stock is currently owned by institutional investors and hedge funds.

About Richardson Electronics

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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