Zacks Research Upgrades Richardson Electronics (NASDAQ:RELL) to Strong-Buy

Richardson Electronics (NASDAQ:RELL) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Tuesday, Zacks reports.

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

Richardson Electronics Trading Up 5.5%

RELL opened at $21.10 on Tuesday. The firm’s 50 day simple moving average is $18.06 and its two-hundred day simple moving average is $15.66. The company has a market capitalization of $313.90 million, a PE ratio of 36.38, a PEG ratio of 0.91 and a beta of 1.32. Richardson Electronics has a 1-year low of $9.37 and a 1-year high of $23.15.

Richardson Electronics (NASDAQ:RELL) last issued 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. 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. Equities analysts forecast that Richardson Electronics will post 0.78 earnings per share for the current fiscal year.

Insider Activity at Richardson Electronics

In other Richardson Electronics news, COO Wendy Diddell sold 23,901 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $20.00, for a total transaction of $478,020.00. Following the completion of the sale, the chief operating officer directly owned 114,150 shares of the company’s stock, valued at $2,283,000. This trade represents a 17.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Robert J. Ben sold 9,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $21.61, for a total transaction of $194,490.00. Following the sale, the chief financial officer directly owned 60,534 shares of the company’s stock, valued at approximately $1,308,139.74. This trade represents a 12.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 42,421 shares of company stock worth $860,345 in the last three months. Corporate insiders own 31.65% of the company’s stock.

Hedge Funds Weigh In On Richardson Electronics

Several hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in shares of Richardson Electronics in the second quarter worth about $18,874,000. First Wilshire Securities Management Inc. grew its holdings in Richardson Electronics by 13.9% during the 1st quarter. First Wilshire Securities Management Inc. now owns 671,998 shares of the technology company’s stock valued at $7,358,000 after buying an additional 82,054 shares in the last quarter. AIGH Capital Management LLC purchased a new position in Richardson Electronics during the 2nd quarter valued at approximately $3,810,000. Bank of New York Mellon Corp bought a new stake in Richardson Electronics in the 2nd quarter worth approximately $1,995,000. Finally, Annis Gardner Whiting Capital Advisors LLC bought a new stake in Richardson Electronics in the 1st quarter worth approximately $1,095,000. Hedge funds and other 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 specialized industrial and healthcare applications. The company serves original equipment manufacturers, government agencies, medical facilities, distributors and other commercial customers through its product portfolio and technical support services.

Its Power and Microwave Technologies business supplies components and systems used in power conversion, renewable energy, semiconductor manufacturing, aerospace and defense, telecommunications, and other industrial markets.