Richardson Electronics (NASDAQ:RELL) Stock Dropped to “Hold” by Zacks Research

Richardson Electronics (NASDAQ:RELL) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday, Zacks reports.

A number of other equities analysts have also recently weighed in on RELL. Weiss Ratings reiterated a “hold (c)” rating on shares of Richardson Electronics in a report on Monday, July 20th. Wall Street Zen upgraded shares of Richardson Electronics from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Finally, Northland Securities raised Richardson Electronics from a “market perform” rating to an “outperform” rating and lifted their target price for the company from $14.00 to $24.00 in a research report on Tuesday, July 28th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Richardson Electronics has a consensus rating of “Hold” and a consensus target price of $24.00.

Richardson Electronics Stock Up 1.1%

Shares of RELL opened at $17.30 on Monday. The firm’s fifty day moving average is $18.12 and its two-hundred day moving average is $16.23. The stock has a market cap of $254.14 million, a PE ratio of 39.32, a price-to-earnings-growth ratio of 1.36 and a beta of 1.25. Richardson Electronics has a 52-week low of $9.37 and a 52-week high of $23.15.

Richardson Electronics (NASDAQ:RELL) last released its earnings results on Wednesday, July 22nd. The technology company reported $0.21 earnings per share for the quarter, topping 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 3.55%. As a group, research analysts anticipate that Richardson Electronics will post 0.5 earnings per share for the current year.

Insider Transactions at Richardson Electronics

In related news, Director Paul Plante sold 17,000 shares of the firm’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $18.81, for a total value of $319,770.00. Following the completion of the sale, the director owned 14,188 shares in the company, valued at $266,876.28. This trade represents a 54.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Robert Ben sold 9,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $21.61, for a total value of $194,490.00. Following the sale, the chief financial officer directly owned 60,534 shares in the company, valued at $1,308,139.74. This trade represents a 12.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 133,585 shares of company stock valued at $2,565,216 in the last three months. Insiders own 31.65% of the company’s stock.

Institutional Investors Weigh In On Richardson Electronics

Several hedge funds have recently made changes to their positions in RELL. Annis Gardner Whiting Capital Advisors LLC purchased a new stake in Richardson Electronics in the 1st quarter valued at about $1,095,000. Lazard Asset Management LLC purchased a new position in shares of Richardson Electronics during the 1st quarter worth about $697,000. First Wilshire Securities Management Inc. boosted its position in shares of 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 worth $7,358,000 after acquiring an additional 82,054 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Richardson Electronics in the second quarter worth approximately $18,874,000. Finally, AIGH Capital Management LLC purchased a new stake in Richardson Electronics in the second quarter valued at approximately $3,810,000. Institutional investors and hedge funds own 71.95% of the company’s stock.

About Richardson Electronics

Richardson Electronics, Ltd. (NASDAQ: RELL) is a global provider of engineered solutions, electronic components and replacement parts for industrial, healthcare, aviation and other specialized markets. The company serves original equipment manufacturers, maintenance providers and end users through its technical expertise, product distribution capabilities and customized engineering services.

Its business is organized around several principal areas. Richardson Healthcare supplies replacement parts and components for medical imaging systems, including ultrasound transducers and other products used in diagnostic imaging equipment.