Richardson Electronics (NASDAQ:RELL) Stock Price Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• RELL crossed above its 200-day moving average: shares rose above the $11.52 200-day MA and traded as high as $14.47 (last $14.40) on elevated volume, representing a roughly 4.7% intraday gain.
• Analyst sentiment is neutral: Weiss Ratings upgraded RELL from "sell" to "hold," and the consensus from two analysts is a Hold rating with an average target price of $14.00.
• Key fundamentals and corporate actions: Richardson has a market cap of about $210M and a high P/E (~53), reported a Q1 EPS beat ($0.07 vs. $0.05), declared a $0.06 quarterly dividend (1.7% yield, 88.9% payout ratio), and insiders sold roughly 19,000 shares over the past three months.

Shares of Richardson Electronics, Ltd. (NASDAQ:RELL - Get Free Report) crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $11.52 and traded as high as $14.47. Richardson Electronics shares last traded at $14.40, with a volume of 61,727 shares changing hands.

Analysts Set New Price Targets

A number of brokerages recently issued reports on RELL. Weiss Ratings upgraded Richardson Electronics from a "sell (d+)" rating to a "hold (c)" rating in a report on Wednesday, April 22nd. Northland Securities set a $14.00 target price on Richardson Electronics in a report on Friday, April 10th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Richardson Electronics presently has an average rating of "Hold" and an average target price of $14.00.

Richardson Electronics Trading Up 4.7%

The firm has a market capitalization of $209.62 million, a price-to-earnings ratio of 53.34, a PEG ratio of 2.16 and a beta of 1.13. The stock has a fifty day moving average of $12.37 and a 200-day moving average of $11.52.

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

Richardson Electronics Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Friday, May 8th will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, May 8th. Richardson Electronics's dividend payout ratio is currently 88.89%.

Insider Activity

In related news, CFO Robert J. Ben sold 4,000 shares of the stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $12.99, for a total value of $51,960.00. Following the completion of the sale, the chief financial officer directly owned 53,034 shares of the company's stock, valued at approximately $688,911.66. This represents a 7.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kenneth Halverson sold 10,000 shares of the 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 completion of the sale, the director directly owned 14,345 shares of the company's stock, valued at approximately $187,776.05. This represents a 41.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 19,000 shares of company stock valued at $242,360. Company insiders own 33.40% of the company's stock.

Institutional Trading of Richardson Electronics

A number of institutional investors have recently bought and sold shares of RELL. AMH Equity Ltd acquired a new stake in Richardson Electronics during the third quarter valued at $783,000. Marshall Wace LLP acquired a new stake in Richardson Electronics during the fourth quarter valued at $626,000. Walleye Capital LLC acquired a new stake in Richardson Electronics during the fourth quarter valued at $497,000. Susquehanna International Group LLP boosted its position in Richardson Electronics by 840.6% during the third quarter. Susquehanna International Group LLP now owns 48,740 shares of the technology company's stock valued at $477,000 after purchasing an additional 43,558 shares during the last quarter. Finally, Nano Cap New Millennium Growth Fund L P acquired a new stake in Richardson Electronics during the fourth quarter valued at $462,000. Institutional investors and hedge funds own 71.95% of the company's stock.

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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