Zacks Research Downgrades Richardson Electronics (NASDAQ:RELL) to Hold

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

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

Richardson Electronics Stock Performance

Shares of RELL stock opened at $17.30 on Monday. The firm’s 50-day moving average is $18.12 and its 200-day moving average is $16.23. The stock 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 has a 52-week low of $9.37 and a 52-week high of $23.15.

Richardson Electronics (NASDAQ:RELL) last issued its earnings results on Wednesday, July 22nd. The technology company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.14. The business had revenue of $66.20 million during the quarter, compared to the consensus estimate of $55.37 million. Richardson Electronics had a net margin of 2.79% and a return on equity of 3.55%. Sell-side analysts predict that Richardson Electronics will post 0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In other Richardson Electronics news, CFO Robert Ben sold 9,000 shares of the company’s stock in a transaction 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 transaction, the chief financial officer directly owned 60,534 shares of the company’s stock, valued at $1,308,139.74. This represents a 12.94% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Kenneth Halverson sold 1,500 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $17.47, for a total value of $26,205.00. Following the transaction, the director owned 10,865 shares in the company, valued at $189,811.55. The trade was a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 corporate insiders.

Hedge Funds Weigh In On Richardson Electronics

Several institutional investors and hedge funds have recently modified their holdings of the business. Hsbc Holdings PLC acquired a new stake in Richardson Electronics in the 2nd quarter worth about $208,000. Deutsche Bank AG bought a new stake in Richardson Electronics in the 2nd quarter valued at about $230,000. Granite Investment Partners LLC acquired a new position in shares of Richardson Electronics during the 1st quarter worth approximately $143,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Richardson Electronics during the 2nd quarter worth approximately $293,000. Finally, Globeflex Capital L P increased its holdings in shares of Richardson Electronics by 36.4% during the fourth quarter. Globeflex Capital L P now owns 16,327 shares of the technology company’s stock worth $178,000 after purchasing an additional 4,355 shares during the period. 71.95% of the stock is currently owned by institutional investors and hedge funds.

Richardson Electronics Company Profile

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.