Richardson Electronics (NASDAQ:RELL) Upgraded by Northland Securities to "Outperform" Rating

Key Points

• Northland Securities upgraded Richardson Electronics from “market perform” to “outperform” and set a $24.00 price target, implying approximately 29.9% upside from the prior close.
• Richardson Electronics reported quarterly EPS of $0.21, exceeding the $0.07 consensus estimate, while revenue of $66.20 million also surpassed analysts’ $55.37 million forecast.
• The stock opened at $18.48, with a consensus analyst rating of “Buy” and a consensus price target of $24.00; institutional investors own 71.95% of outstanding shares.

Richardson Electronics (NASDAQ:RELL - Get Free Report) was upgraded by equities researchers at Northland Securities from a "market perform" rating to an "outperform" rating in a research report issued on Tuesday, Marketbeat reports. The brokerage currently has a $24.00 target price on the technology company's stock. Northland Securities' price objective would suggest a potential upside of 29.87% from the stock's previous close.

RELL has been the topic of several other reports. Zacks Research raised shares of Richardson Electronics from a "hold" rating to a "strong-buy" rating in a research note on Friday. Weiss Ratings reissued a "hold (c)" rating on shares of Richardson Electronics in a research report on Monday, July 20th. One equities research 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. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $24.00.

Richardson Electronics Price Performance

Shares of RELL opened at $18.48 on Tuesday. The company has a 50-day moving average of $17.45 and a two-hundred day moving average of $14.25. The stock has a market cap of $269.07 million, a price-to-earnings ratio of 42.00, a PEG ratio of 1.84 and a beta of 1.26. Richardson Electronics has a one year low of $9.37 and a one year high of $23.15.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.07 by $0.14. The business had revenue of $66.20 million for the quarter, compared to analyst estimates of $55.37 million. Richardson Electronics had a net margin of 2.79% and a return on equity of 3.57%. Analysts anticipate that Richardson Electronics will post 0.39 earnings per share for the current year.

Insider Buying and Selling at Richardson Electronics

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

Hedge Funds Weigh In On Richardson Electronics

A number of hedge funds have recently added to or reduced their stakes in RELL. Annis Gardner Whiting Capital Advisors LLC acquired a new stake in Richardson Electronics in the first quarter valued at approximately $1,095,000. First Wilshire Securities Management Inc. raised its holdings in shares of Richardson Electronics by 13.9% during the 1st quarter. First Wilshire Securities Management Inc. now owns 671,998 shares of the technology company's stock valued at $7,358,000 after purchasing an additional 82,054 shares in the last quarter. Nano Cap New Millennium Growth Fund L P acquired a new stake in shares of Richardson Electronics in the 4th quarter valued at $462,000. Empowered Funds LLC boosted its holdings in Richardson Electronics by 9.0% in the fourth quarter. Empowered Funds LLC now owns 19,142 shares of the technology company's stock worth $208,000 after purchasing an additional 1,587 shares in the last quarter. Finally, Acadian Asset Management LLC increased its position 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 worth $928,000 after buying an additional 12,097 shares during the last quarter. 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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