Richardson Electronics (NASDAQ:RELL) Stock Price Crosses Below 50 Day Moving Average – Should You Sell?

Richardson Electronics, Ltd. (NASDAQ:RELL)’s share price passed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $18.52 and traded as low as $18.02. Richardson Electronics shares last traded at $18.15, with a volume of 195,542 shares.

Analyst Ratings Changes

RELL has been the topic of a number of research reports. Northland Securities set a $26.00 target price on shares of Richardson Electronics in a research report on Tuesday, October 13th. Weiss Ratings raised shares of Richardson Electronics from a “hold (c)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Zacks Research upgraded shares of Richardson Electronics from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 27th. Finally, Wall Street Zen upgraded shares of Richardson Electronics from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. According to data from MarketBeat.com, Richardson Electronics currently has a consensus rating of “Buy” and a consensus target price of $26.00.

Richardson Electronics Stock Performance

The company has a market cap of $270.07 million, a P/E ratio of 31.29, a P/E/G ratio of 1.01 and a beta of 1.28. The stock has a 50-day simple moving average of $18.52 and a 200 day simple moving average of $16.16.

Richardson Electronics (NASDAQ:RELL) last released its quarterly earnings data on Wednesday, October 7th. The technology company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $0.18. The business had revenue of $64.92 million for the quarter, compared to analysts’ expectations of $58.98 million. Richardson Electronics had a return on equity of 4.82% and a net margin of 3.57%. Sell-side analysts anticipate that Richardson Electronics, Ltd. will post 0.78 earnings per share for the current fiscal year.

Richardson Electronics Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Friday, November 6th will be paid a dividend of $0.06 per share. The ex-dividend date is Friday, November 6th. This represents a $0.24 dividend on an annualized basis and a yield of 1.3%. Richardson Electronics’s payout ratio is currently 41.38%.

Insider Buying and Selling at Richardson Electronics

In other news, Director Kenneth Halverson sold 1,500 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $17.47, for a total value of $26,205.00. Following the completion of the transaction, the director owned 10,865 shares in the company, valued at approximately $189,811.55. This represents a 12.13% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director James Benham sold 3,020 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $17.99, for a total transaction of $54,329.80. Following the completion of the transaction, the director owned 19,345 shares of the company’s stock, valued at approximately $348,016.55. This represents a 13.50% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 10,520 shares of company stock valued at $206,775 in the last 90 days. 31.65% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Empowered Funds LLC lifted its position in shares of Richardson Electronics by 7.6% during the first quarter. Empowered Funds LLC now owns 20,596 shares of the technology company’s stock worth $226,000 after purchasing an additional 1,454 shares in the last quarter. Aristides Capital LLC increased its holdings in shares of Richardson Electronics by 14.1% in the first quarter. Aristides Capital LLC now owns 23,885 shares of the technology company’s stock valued at $262,000 after purchasing an additional 2,945 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in shares of Richardson Electronics by 67.4% in the third quarter. Russell Investments Group Ltd. now owns 11,972 shares of the technology company’s stock valued at $212,000 after purchasing an additional 4,821 shares in the last quarter. Bank of New York Mellon Corp raised its position in Richardson Electronics by 6.3% in the 1st quarter. Bank of New York Mellon Corp now owns 92,426 shares of the technology company’s stock worth $1,012,000 after purchasing an additional 5,506 shares during the last quarter. Finally, Algert Global LLC raised its position in Richardson Electronics by 88.4% in the 2nd quarter. Algert Global LLC now owns 22,235 shares of the technology company’s stock worth $423,000 after purchasing an additional 10,433 shares during the last quarter. Institutional investors and hedge funds own 71.95% of the company’s stock.

About Richardson Electronics

Richardson Electronics, Ltd. is a global provider of engineered solutions and electronic components for customers in industrial, healthcare, communications, and energy markets. Founded in 1947 and headquartered in LaFox, Illinois, the company serves customers in the United States and internationally. Its Power and Microwave Technologies business supplies products such as power and microwave tubes, semiconductors, and other components, along with engineering and replacement solutions for specialized equipment.