Northland Securities Has Strong Outlook for RELL Q2 Earnings

Richardson Electronics, Ltd. (NASDAQ:RELL) – Stock analysts at Northland Securities boosted their Q2 2027 earnings estimates for shares of Richardson Electronics in a report issued on Tuesday, October 13th. Northland Securities analyst B. Brooks now anticipates that the technology company will post earnings per share of $0.16 for the quarter, up from their prior forecast of $0.11. The consensus estimate for Richardson Electronics’ current full-year earnings is $0.65 per share. Northland Securities also issued estimates for Richardson Electronics’ Q3 2027 earnings at $0.16 EPS, Q4 2027 earnings at $0.29 EPS, Q2 2028 earnings at $0.23 EPS and FY2028 earnings at $1.02 EPS.

Several other research firms have also weighed in on RELL. Zacks Research lowered shares of Richardson Electronics from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Wall Street Zen raised Richardson Electronics from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Finally, Weiss Ratings raised Richardson Electronics from a “hold (c)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $26.00.

Richardson Electronics Stock Up 2.6%

NASDAQ:RELL opened at $21.28 on Wednesday. The firm has a market cap of $312.60 million, a PE ratio of 38.41, a price-to-earnings-growth ratio of 1.28 and a beta of 1.32. Richardson Electronics has a 12 month low of $9.37 and a 12 month high of $23.15. The company’s 50-day moving average price is $18.25 and its two-hundred day moving average price is $16.82.

Richardson Electronics (NASDAQ:RELL) last announced its quarterly earnings results on Wednesday, October 7th. The technology company reported $0.27 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $64.92 million during the quarter, compared to the consensus estimate of $58.98 million.

Institutional Trading of Richardson Electronics

Several hedge funds have recently modified their holdings of RELL. Hsbc Holdings PLC acquired a new stake in shares of Richardson Electronics in the 2nd quarter valued at $208,000. Deutsche Bank AG bought a new stake in shares of Richardson Electronics during the second quarter worth $230,000. Granite Investment Partners LLC acquired a new position in shares of Richardson Electronics during the first quarter valued at $143,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Richardson Electronics during the second quarter valued at $293,000. Finally, Empowered Funds LLC boosted its holdings in 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 last quarter. 71.95% of the stock is owned by institutional investors.

Insider Buying and Selling at Richardson Electronics

In other Richardson Electronics news, Director Paul J. 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 approximately $266,876.28. This trade represents a 54.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Wendy Diddell sold 23,901 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $20.00, for a total transaction of $478,020.00. Following the completion of the transaction, the chief operating officer directly owned 114,150 shares of the company’s stock, valued at approximately $2,283,000. This represents a 17.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 133,585 shares of company stock worth $2,565,216 over the last quarter. Corporate insiders own 31.65% of the company’s stock.

Richardson Electronics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 6th will be given a dividend of $0.06 per share. The ex-dividend date is Friday, November 6th. This represents a $0.24 annualized dividend and a yield of 1.1%. Richardson Electronics’s dividend payout ratio is 41.38%.

Key Headlines Impacting Richardson Electronics

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

• Positive Sentiment: Northland Securities raised its price target to $26 and maintained a Buy rating, citing Richardson Electronics’ strong backlog, margin improvement and battery energy storage system (BESS) pipeline. The higher target implies additional upside from recent trading levels. Northland Securities price target and rating article
• Positive Sentiment: Northland raised multiple future EPS forecasts. Its estimates increased to $0.16 from $0.11 for Q2 2027, $0.16 from $0.15 for Q3 2027, $0.29 from $0.27 for Q4 2027, and $0.23 from $0.19 for Q2 2028. The firm also lifted FY2028 EPS to $1.02 from $0.87, signaling stronger expected profitability.
• Positive Sentiment: Sidoti also substantially increased its earnings outlook, raising FY2027 EPS to $0.68 from $0.39 and FY2028 EPS to $0.86 from $0.61. The upward revisions reinforce the view that Richardson’s growth could accelerate beyond the current year. Richardson Electronics analyst estimates
• Positive Sentiment: Richardson Electronics and ComEd announced an expansion of locally produced BESS manufacturing and plans for the company’s first onsite demonstration project, described as Illinois’ largest commercial battery energy storage system. The initiative could improve the company’s positioning in grid reliability and renewable-energy infrastructure. ComEd and Richardson Electronics battery storage announcement
• Neutral Sentiment: Richardson Electronics has gained 9.48% over the past week, indicating strong momentum, although momentum-based investing does not by itself confirm the company’s long-term valuation or execution prospects. Zacks Richardson Electronics momentum article

About Richardson Electronics

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.