Sidoti Equities Analysts Reduce Earnings Estimates for RELL

Key Points

• Sidoti cut its FY2027 EPS estimate for Richardson Electronics to $0.39 (from $0.55) and trimmed several near‑term quarterly forecasts, a move the report says is driving today's downside pressure.
• The stock carries a consensus rating of "Reduce" with a $14.00 target, and it was trading around $13.56 amid a 52‑week range of $7.90–$15.34.
• Despite analyst downgrades, Richardson beat Q1 estimates on both EPS ($0.07 vs. $0.05) and revenue, announced a $0.06 quarterly dividend (1.8% yield annualized), and insiders have sold shares recently.

Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) - Analysts at Sidoti reduced their FY2027 EPS estimates for shares of Richardson Electronics in a research note issued to investors on Monday, April 13th. Sidoti analyst A. Soderstrom now expects that the technology company will post earnings of $0.39 per share for the year, down from their prior forecast of $0.55. The consensus estimate for Richardson Electronics' current full-year earnings is $0.27 per share.

RELL has been the subject of a number of other research reports. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Richardson Electronics in a research report on Wednesday, April 8th. Northland Securities set a $14.00 price objective on shares of Richardson Electronics in a research report on Friday. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $14.00.

Richardson Electronics Price Performance

Richardson Electronics stock opened at $13.56 on Wednesday. The firm has a market cap of $196.89 million, a price-to-earnings ratio of 50.22, a P/E/G ratio of 2.16 and a beta of 1.13. Richardson Electronics has a fifty-two week low of $7.90 and a fifty-two week high of $15.34. The firm has a fifty day moving average price of $12.09 and a two-hundred day moving average price of $11.22.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last released its earnings results on Wednesday, April 8th. The technology company reported $0.07 earnings per share for the quarter, topping analysts' consensus estimates of $0.05 by $0.02. The firm had revenue of $55.47 million during the quarter, compared to analyst estimates of $53.13 million. Richardson Electronics had a net margin of 1.75% and a return on equity of 2.83%.

Richardson Electronics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Friday, May 8th will be given 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 1.8%. Richardson Electronics's dividend payout ratio is currently 88.89%.

Insider Activity at Richardson Electronics

In related news, EVP Jens Frank Ruppert sold 17,000 shares of the company's stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $12.09, for a total value of $205,530.00. Following the sale, the executive vice president owned 39,500 shares of the company's stock, valued at $477,555. The trade was a 30.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Robert J. Ben sold 4,000 shares of the company's stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $12.99, for a total transaction of $51,960.00. Following the completion of the sale, the chief financial officer directly owned 53,034 shares in the company, valued at approximately $688,911.66. The trade was a 7.01% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 36,000 shares of company stock valued at $447,890 over the last quarter. 33.40% of the stock is owned by company insiders.

Institutional Trading of Richardson Electronics

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC increased its stake in Richardson Electronics by 298.8% in the second quarter. Tower Research Capital LLC TRC now owns 4,160 shares of the technology company's stock valued at $40,000 after acquiring an additional 3,117 shares during the period. Raymond James Financial Inc. bought a new stake in Richardson Electronics during the second quarter worth about $57,000. Los Angeles Capital Management LLC bought a new stake in Richardson Electronics during the fourth quarter worth about $91,000. GSA Capital Partners LLP bought a new stake in Richardson Electronics during the third quarter worth about $104,000. Finally, Engineers Gate Manager LP bought a new stake in Richardson Electronics during the second quarter worth about $103,000. Institutional investors own 71.95% of the company's stock.

Richardson Electronics News Roundup

Here are the key news stories impacting Richardson Electronics this week:

• Positive Sentiment: Sidoti raised its FY2026 estimate to $0.25 from $0.22, signaling a modest upgrade to near‑term 2026 profitability expectations.
• Positive Sentiment: Northland’s published model shows FY2027 EPS of $0.39 (above the consensus $0.27), which, if realized, implies stronger full‑year earnings than current consensus and provides longer‑term upside potential.
• Neutral Sentiment: Yahoo Finance: "5 Must‑Read Analyst Questions From Richardson Electronics’s Q1 Earnings Call" — useful read for context on management commentary and investor questions from the recent quarter. 5 Must-Read Analyst Questions From Richardson Electronics’s Q1 Earnings Call
• Neutral Sentiment: Yahoo Finance: "How The Story Is Shifting For Richardson Electronics (RELL) After The New Price Target" — analysis of changing analyst narratives and the new price target that helps explain sentiment dynamics. How The Story Is Shifting For Richardson Electronics (RELL) After The New Price Target
• Neutral Sentiment: Sidoti published a detailed set of forward quarter and FY2028 estimates (Q1–Q3 2028 EPS and FY2028 = $0.60). These are longer‑range forecasts that suggest upside farther out but carry execution risk to be proven.
• Negative Sentiment: Sidoti cut multiple near‑term estimates: FY2027 trimmed to $0.39 from $0.55, and several quarterly cuts (Q4‑2027, Q3‑2027, Q2‑2027, Q1‑2027 and Q4‑2026) — the reductions lower near‑term earnings visibility and are the primary reason for today's downside pressure.
• Negative Sentiment: Northland reduced several near‑term quarter estimates (including Q4‑2026 and Q2/Q4‑2027 to ~$0.07) versus earlier expectations, adding to the negative near‑term outlook.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.