RELL FY2027 EPS Forecast Raised by Northland Securities

Richardson Electronics, Ltd. (NASDAQ:RELL) – Northland Securities upped their FY2027 EPS estimates for shares of Richardson Electronics in a research note issued on Tuesday, July 28th. Northland Securities analyst B. Brooks now expects that the technology company will earn $0.62 per share for the year, up from their prior estimate of $0.39. Northland Securities has a “Outperform” rating and a $24.00 price objective on the stock. The consensus estimate for Richardson Electronics’ current full-year earnings is $0.39 per share. Northland Securities also issued estimates for Richardson Electronics’ Q4 2027 earnings at $0.27 EPS, Q3 2028 earnings at $0.22 EPS, Q4 2028 earnings at $0.30 EPS and FY2028 earnings at $0.87 EPS.

Several other research firms have also weighed in on RELL. Weiss Ratings reiterated a “hold (c)” rating on shares of Richardson Electronics in a research note on Monday, July 20th. Zacks Research upgraded shares of Richardson Electronics from a “hold” rating to a “strong-buy” rating in a report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $24.00.

Richardson Electronics Trading Down 11.0%

Shares of RELL stock opened at $16.69 on Thursday. The company has a market capitalization of $243.01 million, a price-to-earnings ratio of 37.93, a P/E/G ratio of 1.92 and a beta of 1.26. Richardson Electronics has a 1-year low of $9.37 and a 1-year high of $23.15. The stock’s fifty day simple moving average is $17.51 and its 200-day simple moving average is $14.34.

Richardson Electronics (NASDAQ:RELL) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.14. Richardson Electronics had a return on equity of 3.57% and a net margin of 2.79%.The business had revenue of $66.20 million during the quarter, compared to analyst estimates of $55.37 million.

Institutional Trading of Richardson Electronics

Institutional investors and hedge funds have recently made changes to their positions in the stock. Tower Research Capital LLC TRC boosted its stake in shares of Richardson Electronics by 298.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,160 shares of the technology company’s stock worth $40,000 after acquiring an additional 3,117 shares in the last quarter. Raymond James Financial Inc. bought a new stake in Richardson Electronics during the second quarter worth approximately $57,000. Los Angeles Capital Management LLC acquired a new position in Richardson Electronics during the fourth quarter valued at approximately $91,000. Engineers Gate Manager LP bought a new position in shares of Richardson Electronics in the second quarter valued at approximately $103,000. Finally, Deutsche Bank AG lifted its stake in shares of Richardson Electronics by 150.3% in the fourth quarter. Deutsche Bank AG now owns 11,421 shares of the technology company’s stock worth $124,000 after buying an additional 6,858 shares during the last quarter. Institutional investors and hedge funds own 71.95% of the company’s stock.

Insider Buying and Selling

In other Richardson Electronics news, Director Kenneth Halverson sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $14.69, for a total value of $146,900.00. Following the completion of the sale, the director directly owned 14,345 shares of the company’s stock, valued at $210,728.05. The trade was a 41.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Kathleen Mcnally sold 6,636 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $16.85, for a total transaction of $111,816.60. Following the transaction, the executive vice president owned 45,719 shares in the company, valued at approximately $770,365.15. This trade represents a 12.68% decrease in their position. The disclosure for this sale is available in the SEC filing. 33.40% of the stock is owned by insiders.

Richardson Electronics Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Investors of record on Friday, August 7th will be given a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 7th. Richardson Electronics’s dividend payout ratio (DPR) is presently 54.55%.

Trending Headlines about Richardson Electronics

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

• Positive Sentiment: Northland Securities upgraded Richardson Electronics from “Market Perform” to “Outperform” and raised its price target to $24 from $14. Based on the referenced $16.69 share price, the target implies substantial potential upside. Richardson Electronics Stock Rating Upgraded by Northland Securities
• Positive Sentiment: The analyst significantly increased its FY2027 EPS forecast to $0.62 from $0.39 and raised its Q4 2027 estimate to $0.27 from $0.07. Northland also projects $0.87 in FY2028 EPS, suggesting expectations for strong earnings growth.
• Positive Sentiment: Northland’s forward quarterly estimates range from $0.09 to $0.30 per share through fiscal 2028, supporting the firm’s constructive long-term outlook and $24 price objective.
• Neutral Sentiment: The estimate changes largely repeat the same Northland research note rather than representing new company operating results. The current-year consensus remains $0.39 EPS.
• Negative Sentiment: Northland lowered its Q1 2027 EPS forecast to $0.09 from $0.11, partially offsetting the increases to later-period estimates.
• Negative Sentiment: At approximately $16.69, Richardson Electronics trades at about 38 times earnings, leaving the shares vulnerable to selling if investors view the bullish outlook as already reflected in the price. The company’s modest 2.79% net margin also highlights execution risk.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. (NASDAQ:RELL) is a global manufacturer, distributor and servicer of engineered components and subsystems for a diverse range of industrial, medical and scientific applications. The company specializes in vacuum electron devices, high-voltage power supplies and related electronic components, offering klystrons, traveling wave tubes, magnetrons, X-ray tubes, microwave amplifiers and power conversion products. Its solutions support customers in power grid management, semiconductor processing, medical imaging, scientific instrumentation and telecommunications.

In addition to its manufacturing capabilities, Richardson Electronics maintains a broad distribution network comprising thousands of standard and custom parts.