Sidoti Predicts Stronger Earnings for Richardson Electronics

Richardson Electronics, Ltd. (NASDAQ:RELL) – Research analysts at Sidoti increased their FY2027 EPS estimates for shares of Richardson Electronics in a research report issued to clients and investors on Friday, October 9th. Sidoti analyst A. Soderstrom now forecasts that the technology company will post earnings per share of $0.68 for the year, up from their prior forecast of $0.39. The consensus estimate for Richardson Electronics’ current full-year earnings is $0.50 per share. Sidoti also issued estimates for Richardson Electronics’ FY2028 earnings at $0.86 EPS.

Richardson Electronics (NASDAQ:RELL) last released its earnings results on Wednesday, October 7th. The technology company reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.18. Richardson Electronics had a net margin of 3.57% and a return on equity of 4.82%. The company had revenue of $64.92 million for the quarter, compared to the consensus estimate of $58.98 million.

Several other equities research analysts also recently commented on the stock. Wall Street Zen upgraded shares of Richardson Electronics from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Northland Securities raised shares of Richardson Electronics from a “market perform” rating to an “outperform” rating and boosted their price objective for the company from $14.00 to $24.00 in a report on Tuesday, July 28th. Weiss Ratings raised Richardson Electronics from a “hold (c)” rating to a “buy (b-)” rating in a research report on Thursday. Finally, Zacks Research lowered Richardson Electronics from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $24.00.

Richardson Electronics Trading Down 0.2%

Shares of Richardson Electronics stock opened at $20.74 on Tuesday. The firm’s 50 day simple moving average is $18.25 and its two-hundred day simple moving average is $16.76. The firm has a market capitalization of $304.71 million, a price-to-earnings ratio of 35.76, a PEG ratio of 1.65 and a beta of 1.32. Richardson Electronics has a 12-month low of $9.37 and a 12-month high of $23.15.

Richardson Electronics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 6th will be issued a dividend of $0.06 per share. The ex-dividend date of this dividend is Friday, November 6th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.2%. Richardson Electronics’s payout ratio is 41.38%.

Insider Activity

In related news, Director Jacques Belin sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $21.46, for a total value of $107,300.00. Following the sale, the director owned 22,365 shares in the company, valued at $479,952.90. This represents a 18.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director James Benham sold 3,020 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $17.99, for a total value of $54,329.80. Following the completion of the sale, the director owned 19,345 shares in the company, valued at approximately $348,016.55. This represents a 13.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 133,585 shares of company stock valued at $2,565,216. 31.65% of the stock is owned by insiders.

Institutional Trading of Richardson Electronics

Several large investors have recently made changes to their positions in RELL. Annis Gardner Whiting Capital Advisors LLC purchased a new position in shares of Richardson Electronics during the first quarter worth $1,095,000. BlackRock Inc. purchased a new stake in Richardson Electronics in the second quarter valued at $18,874,000. Lazard Asset Management LLC purchased a new stake in Richardson Electronics in the first quarter valued at $697,000. First Wilshire Securities Management Inc. boosted its holdings in Richardson Electronics by 13.9% in the first 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 during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Richardson Electronics during the 2nd quarter worth about $1,995,000. 71.95% of the stock is owned by hedge funds and other institutional investors.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. (NASDAQ: RELL) is a global provider of engineered solutions, replacement parts and specialized components for industrial, healthcare and energy markets. Founded in 1947 and headquartered in LaFox, Illinois, the company serves original equipment manufacturers, distributors and end users through a network that spans North America, Europe and Asia.

The company operates through three primary business areas. Its Power and Microwave Technologies segment supplies power semiconductors, electronic components, vacuum tubes, radio-frequency and microwave products, and related engineering services for applications including telecommunications, industrial equipment, broadcasting and defense.