Insider Selling: Richardson Electronics (NASDAQ:RELL) CFO Sells 7,500 Shares of Stock

Richardson Electronics, Ltd. (NASDAQ:RELL) CFO Robert Ben sold 7,500 shares of the business’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $20.00, for a total value of $150,000.00. Following the transaction, the chief financial officer directly owned 60,534 shares in the company, valued at approximately $1,210,680. This trade represents a 11.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Richardson Electronics Trading Up 7.9%

NASDAQ:RELL traded up $1.32 on Thursday, hitting $18.02. The company’s stock had a trading volume of 154,035 shares, compared to its average volume of 195,096. Richardson Electronics, Ltd. has a one year low of $9.37 and a one year high of $23.15. The firm has a market capitalization of $262.30 million, a P/E ratio of 40.97, a price-to-earnings-growth ratio of 1.92 and a beta of 1.26. The stock has a fifty day moving average of $17.51 and a two-hundred day moving average of $14.34.

Richardson Electronics (NASDAQ:RELL) last issued its earnings results on Wednesday, July 22nd. The technology company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.07 by $0.14. The company had revenue of $66.20 million during the quarter, compared to the consensus estimate of $55.37 million. Richardson Electronics had a return on equity of 3.57% and a net margin of 2.79%. As a group, sell-side analysts anticipate that Richardson Electronics, Ltd. will post 0.39 EPS for the current year.

Richardson Electronics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Friday, August 7th will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Friday, August 7th. Richardson Electronics’s payout ratio is 54.55%.

Key Stories Impacting Richardson Electronics

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

• Positive Sentiment: Northland raised its FY2027 EPS forecast to $0.62 from $0.39 and increased its Q4 2027 estimate to $0.27 from $0.07. These revisions suggest the analyst expects substantially stronger profitability than previously anticipated.
• Positive Sentiment: The analyst projects additional earnings growth into FY2028, including $0.87 EPS, with estimates of $0.22 for Q3 2028 and $0.30 for Q4 2028. The longer-term outlook supports Northland’s bullish rating and price target.
• Positive Sentiment: The estimates follow Richardson Electronics’ latest quarterly report, which exceeded expectations: EPS was $0.21 versus a $0.07 consensus estimate, while revenue reached $66.2 million compared with expectations of $55.37 million. The strong beat may have increased confidence in the company’s earnings trajectory.
• Neutral Sentiment: Not all revisions were higher. Northland reduced its Q1 2027 EPS forecast to $0.09 from $0.11, while raising Q2 2027 to $0.11 from $0.07 and Q3 2027 to $0.15 from $0.13. The mixed quarterly changes indicate some near-term variability, despite a stronger overall medium-term outlook.

Wall Street Analyst Weigh In

RELL has been the topic of several research analyst reports. Zacks Research raised shares of Richardson Electronics from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 24th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Richardson Electronics in a report on Monday, July 20th. Finally, Northland Securities upgraded shares of Richardson Electronics from a “market perform” rating to an “outperform” rating and upped their price target for the company from $14.00 to $24.00 in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $24.00.

Institutional Investors Weigh In On Richardson Electronics

A number of hedge funds and other institutional investors have recently modified their holdings of RELL. Empowered Funds LLC boosted its position in shares of Richardson Electronics by 7.6% in the first quarter. Empowered Funds LLC now owns 20,596 shares of the technology company’s stock valued at $226,000 after acquiring an additional 1,454 shares during the period. Lazard Asset Management LLC bought a new position in Richardson Electronics during the first quarter worth about $697,000. Aristides Capital LLC raised its stake in Richardson Electronics by 14.1% in the 1st quarter. Aristides Capital LLC now owns 23,885 shares of the technology company’s stock worth $262,000 after purchasing an additional 2,945 shares in the last quarter. First Wilshire Securities Management Inc. raised its stake in Richardson Electronics by 13.9% in the 1st quarter. First Wilshire Securities Management Inc. now owns 671,998 shares of the technology company’s stock worth $7,358,000 after purchasing an additional 82,054 shares in the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC acquired a new stake in Richardson Electronics in the 1st quarter worth about $1,095,000. Institutional investors and hedge funds own 71.95% of the company’s stock.

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.