Richardson Electronics (NASDAQ:RELL) Stock Rating Cut to “Hold” at Zacks Research

Zacks Research lowered shares of Richardson Electronics (NASDAQ:RELL) from a strong-buy rating to a hold rating in a research report report published on Monday,Zacks reports.

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

Richardson Electronics Stock Up 1.1%

Richardson Electronics stock opened at $17.30 on Monday. Richardson Electronics has a 52-week low of $9.37 and a 52-week high of $23.15. The firm’s fifty day moving average is $18.12 and its 200 day moving average is $16.23. The company has a market cap of $254.14 million, a price-to-earnings ratio of 39.32, a PEG ratio of 1.36 and a beta of 1.25.

Richardson Electronics (NASDAQ:RELL) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $0.21 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.14. The business had revenue of $66.20 million during the quarter, compared to analysts’ expectations of $55.37 million. Richardson Electronics had a net margin of 2.79% and a return on equity of 3.55%. On average, equities research analysts anticipate that Richardson Electronics will post 0.5 earnings per share for the current fiscal year.

Richardson Electronics Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Investors of record on Friday, August 7th were paid a dividend of $0.06 per share. The ex-dividend date of this dividend was Friday, August 7th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.4%. Richardson Electronics’s payout ratio is currently 54.55%.

Insider Buying and Selling

In other Richardson Electronics news, Director James Benham sold 3,020 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was 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 in the company, valued at $348,016.55. The trade was a 13.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Wendy Diddell sold 23,901 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $20.00, for a total value of $478,020.00. Following the transaction, the chief operating officer directly owned 114,150 shares in the company, valued at approximately $2,283,000. This represents a 17.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 133,585 shares of company stock worth $2,565,216 over the last three months. 31.65% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Richardson Electronics

Several hedge funds have recently bought and sold shares of RELL. Hsbc Holdings PLC purchased a new stake in Richardson Electronics in the second quarter worth $208,000. Deutsche Bank AG purchased a new stake in shares of Richardson Electronics during the second quarter valued at $230,000. Granite Investment Partners LLC bought a new position in shares of Richardson Electronics in the first quarter worth about $143,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Richardson Electronics in the second quarter worth about $293,000. Finally, Globeflex Capital L P increased its stake in Richardson Electronics by 36.4% in the 4th quarter. Globeflex Capital L P now owns 16,327 shares of the technology company’s stock worth $178,000 after buying an additional 4,355 shares during the period. Institutional investors 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.