Richardson Electronics Stock (NASDAQ: RELL)

Richardson Electronics (NASDAQ:RELL) Stock

Richardson Electronics

Richardson Electronics Ltd provides engineered solutions, power grid, and microwave tubes and related consumables, power conversion, RF and microwave components, high-value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment and customized display solutions. Its products have applications in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company segments include PMT (Power and Microwave Technologies Group), Canvys, (Green Energy Solutions) GES, and Healthcare reportable segments. The company derives the majority of its revenues from the PMT segment.

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Richardson Electronics, Ltd. - Common Stock

Richardson Electronics Ltd

Majority of Richardson Healthcare Assets Sold to DirectMed Imaging
Remaining Healthcare Business to be Consolidated into the Company's&nbsp;PMT Strategic Business Unit
LAFOX, Ill., Jan. 24, 2025 (GLOBE NEWSWIRE) -- <a href="https://www.globenewswire.com/Tracker?data=Vc4C7grnYwxkZlM4vsIzLPmG77opTZl-lU7yWdHSfgTVnR9gJ6eB65Otj5Kea89p2MsZ01ItsR1IY5OWNhuLDNOa_BLvEd-NL5VfaqfvQg8=">Richardson Electronics, Ltd.</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>), a global provider of engineered solutions for renewable energy and other power management applications, today announced the strategic asset sale of a majority of Richardson Healthcare to DirectMed Imaging ("DirectMed"). The transaction closed on January 24, 2025.
Under the terms of the transaction, Richardson Electronics sold a substantial portion of the Richardson Healthcare reportable segment to DirectMed. Additionally, Richardson Electronics entered into an exclusive 10-year global supply agreement in which Richardson will supply DirectMed with repaired Siemens CT X-ray tubes. Richardson Electronics will also continue manufacturing ALTA CT X-ray tubes for DirectMed for approximately 12 to 18 months. The remaining assets and operations of the Richardson Healthcare reportable segment, primarily CT X-ray tube manufacturing and repair, will be consolidated into the Company's PMT reportable segment.

Contracts

Richardson Electronics Entered Into An Exclusive 10-Year Global Supply Agreement In Which Richardson Will Supply Directmed With Repaired Siemens CT X-Ray Tubes. Richardson Electronics Will Also Continue Manufacturing ALTA CT X-Ray Tubes For DirectMed For ~12-18 Months

The Acquisition of a Majority of Richardson Healthcare Strengthens DirectMed Imaging's Position as the Leading Canon/Toshiba Aftermarket Parts Supplier
DirectMed Imaging, a leading supplier of aftermarket medical imaging parts, systems, and training, today announces the acquisition of Richardson Healthcare's Fort Mill, SC operation. Richardson Healthcare is a division of Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>).
DirectMed's acquisition expands its Canon/Toshiba MRI and CT parts expertise and inventory breadth. The purchase also allows DirectMed to enter the Canon/Toshiba CT training market for engineers and biomedical professionals, as well as become the exclusive global distributor for Richardson Electronics repaired Siemens Straton Z, MX, and MXP CT X-ray tubes. Additionally, DirectMed will now be the exclusive global distributor for the ALTA750 and ALTA 750G CT X-ray tubes.
DirectMed's customers will benefit from Richardson Electronics' world-class X-ray tube manufacturing infrastructure, engineering talent, and expertise that repairs Siemens X-ray tubes, a highly-valued offering in the marketplace.

Asset Sales

DirectMed Imaging Acquires Richardson Healthcare's Fort Mill Operation; Terms Not Disclosed

Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) released its Q2 earnings on Tuesday, January 7, 2025 at 04:15 PM.
Here's what's important from the earnings announcement.
<h3>Earnings</h3>
Richardson Electronics missed estimated earnings by -150.0%, reporting an EPS of $-0.05 versus an estimate of $-0.02.
Revenue was up $5.36 million from the same period last year.
<h3>Performance in Previous Earnings</h3>
Last quarter the company beat on EPS by $0.05 which was followed by a 3.0% drop in the share price the next day.
Here's a look at Richardson Electronics's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q1 2025</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>-0.01</td>
<td>-0.04</td>
<td>0.02</td>
<td>0.01</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.04</td>
<td>0.02</td>
<td>0.05</td>
<td>-0.13</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>49.45M</td>
<td>48.01M</td>
<td>56.00M</td>
<td>52.00M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>53.73M</td>
<td>47.37M</td>
<td>52.38M</td>
<td>44.13M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Richardson Electronics <a href="https://www.benzinga.com/quote/RELL/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Richardson Electronics Earnings Report: Q2 Overview

Guidance

Richardson Electronics Expects YoY Sales Growth And Higher Profitability For FY25

Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) reported quarterly losses of $(0.05) per share which missed the analyst consensus estimate of $(0.02) by 150 percent. The company reported quarterly sales of $49.500 million which missed the analyst consensus estimate of $51.310 million by 3.53 percent. This is a 12.17 percent increase over sales of $44.130 million the same period last year.

Earnings Misses

Richardson Electronics Q2 2025 GAAP EPS $(0.05) Misses $(0.02) Estimate, Sales $49.500M Miss $51.310M Estimate

<h3>Companies Reporting Before The Bell</h3>
• Lindsay (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNN#NYSE">LNN</a>) is estimated to report quarterly earnings at $1.39 per share on revenue of $169.78 million. 
• Apogee Enterprises (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APOG#NASDAQ">APOG</a>) is estimated to report quarterly earnings at $1.11 per share on revenue of $332.19 million. 
• RPM Intl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RPM#NYSE">RPM</a>) is likely to report quarterly earnings at $1.34 per share on revenue of $1.79 billion. 
<h3>Companies Reporting After The Bell</h3>
• Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) is projected to report quarterly loss at $0.02 per share on revenue of $51.31 million. 
• AZZ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZZ#NYSE">AZZ</a>) is expected to report quarterly earnings at $1.27 per share on revenue of $396.64 million. 
• Simulations Plus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLP#NASDAQ">SLP</a>) is projected to report quarterly earnings at $0.17 per share on revenue of $18.80 million. 
• Kura Sushi USA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KRUS#NASDAQ">KRUS</a>) is estimated to report quarterly loss at $0.20 per share on revenue of $61.72 million. 
• Cal-Maine Foods (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CALM#NASDAQ">CALM</a>) is estimated to report quarterly earnings at $3.68 per share on revenue of $751.50 million. 
• AAR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIR#NYSE">AIR</a>) is likely to report quarterly earnings at $0.84 per share on revenue of $654.09 million. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

APOG

CALM

KRUS

Earnings Scheduled For January 7, 2025

Richardson Electronics Announces Two Multi-Million Dollar Contracts For Its Ultracapacitor Pitch Energy Modules

<a href="https://www.globenewswire.com/Tracker?data=tkJSwXXLx0UYuAXHLo84AhpRn9AQfwuuzVS9YG6Iw-LNURv32W8yRHBXQ50oapxb0PK7Ym7v75A3m7DpamlYyiqjZ0xToo06infhlCmF5kM=">Richardson Electronics, Ltd</a>. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) and <a href="https://www.globenewswire.com/Tracker?data=WFo8K2YTBRmOH7SATlGHYsu6vS6MPMfma03zHtMp7I18Z_nXdgRs8qeUlvcW47IHIR7NfoDikI8Z1hh92du7mjJTpLK9o4JaTvwRpUJ1LtdSxyE57VwEbb6h3h8iWrxdG2lXggSoF_V7Kwp81l1H5gZfFjIBvzcDnVJMK_3XMC24cCqAkPpU62yOZxqb7fXX-JCgJ5mpvAcGHxLxYUbZiVctfIWkjO5BLBCVOKFrwx2jItsqHvQDxYN1engyTCLDF_FWAnK8OjGLW-NH5kJrbQ==">Navitas Semiconductor</a>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVTS#NASDAQ">NVTS</a>)&nbsp;announced today an expanded distribution partnership for next-gen silicon carbide (SiC) power semiconductors for Europe, the Middle East, and Africa (EMEA).
Navitas is the only pure-play, next-generation power-semiconductor company and industry leader in next-generation GeneSiC&#x2122; silicon carbide (SiC) and GaNFast&#x2122; gallium nitride (GaN) power semiconductors. Enabled by 20 years of SiC innovation leadership, GeneSiC proprietary ‘<a href="https://www.globenewswire.com/Tracker?data=b4vMnQM9lLn6l1qeun-N3E3kJW-T_j_EfE-UFov1CLGTtSEKD6V1OKABtDPi1RPJLRUYx5pEDguH5RNYQ-hPWmdoxnWZpQemnc8QnqnH3ThSNGyojKOuWmHMJ_BGwFUH">trench-assisted planar</a>' technology provides world-leading performance over temperature, delivering high-speed, cool-running operation for high-power, high-reliability applications.
Richardson Electronics, Ltd. will continue to focus on the <a href="https://www.globenewswire.com/Tracker?data=gXgEQ1M6ZPXWgX425HW0Kg4M0lZQyu7BTRAJuj_LOEJci5WMHC8vWmPqR2uCmiUWNvAO41zL0N2_PfA0i8ifqKy0mDdtlO-6ZmhjSHP3C1nyAdwgjirl5-knK3BqX1M8">GeneSiC</a> product line, expanding from North America into EMEA. This includes Navitas' latest family of Gen-3 Fast MOSFETs, delivering a high-speed, cool-running performance that ensures&nbsp;<a href="https://www.globenewswire.com/Tracker?data=KoGLJVQyaB_LinASzW-fp9HpFIDM_JCgeZ44TpwhDmY0BZ-HTrhcvIeyO1xeODBH8yVT5UaFCbmYhLX3Mh7QRBjt7RFbhTp17fZ9G6C4-jhDFLD_q_p7pxxz29ofkBe8">up to 25°C lower</a>&nbsp;case temperatures and up to 3x longer life than alternative SiC products. This enables unprecedented, industry-leading levels of performance, robustness, and quality.
With an entire portfolio from 650V to 6,500V, including bare die for those requiring further flexibility in their engineered solutions, these devices are ideal for higher power applications, including but not limited to, renewable energy and storage, motor drives, induction heating and welding, battery charging, and high voltage DC-DC conversion.

Global

NVTS

Navitas and Richardson Electronics Expand Technology Partnership To EMEA For Next-Gen Silicon Carbide Power Devices

"We also remain focused on improving inventory management and we expect sales growth throughout fiscal 2025 to reduce inventory levels over the next several quarters.&nbsp;For the first quarter we generated positive operating cash flow for the second straight quarter and ended the quarter with no debt and $23.0 million in cash and cash equivalents.&nbsp;We believe our strong balance sheet provides us with the flexibility to support the current needs of our business, while continuing to invest capital in long-term growth strategies. In addition, we remain committed to maintaining a strong balance sheet, optimizing our business, and pursuing profitable growth opportunities. Overall, fiscal year 2025 is off to a good start, and we expect year-over-year sales growth and higher profitability for the full fiscal year," concluded Mr. Richardson.

Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) reported quarterly earnings of $0.04 per share which beat the analyst consensus estimate of $(0.01) by 500 percent. This is a 55.56 percent decrease over earnings of $0.09 per share from the same period last year. The company reported quarterly sales of $53.73 million which beat the analyst consensus estimate of $49.45 million by 8.66 percent. This is a 2.18 percent increase over sales of $52.58 million the same period last year.

Earnings Beats

Richardson Electronics Q1 EPS $0.04 Beats $(0.01) Estimate, Sales $53.73M Beat $49.45M Estimate

Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) is gearing up to announce its quarterly earnings on Wednesday, 2024-10-09. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Richardson Electronics will report an earnings per share (EPS) of $-0.01.
Richardson Electronics bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Earnings Track Record</h3>
The company's EPS beat by $0.06 in the last quarter, leading to a 2.43% increase in the share price on the following day.
Here's a look at Richardson Electronics's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>-0.04</td>
<td>0.02</td>
<td>0.01</td>
<td>0.03</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.02</td>
<td>0.05</td>
<td>-0.13</td>
<td>0.09</td>
</tr>
<tr>
<td>Price Change %</td>
<td>2.0%</td>
<td>15.0%</td>
<td>-19.0%</td>
<td>-6.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1728396069_0.png" alt="eps graph" />
<h3>Tracking Richardson Electronics's Stock Performance</h3>
Shares of Richardson Electronics were trading at $12.69 as of October 07. Over the last 52-week period, shares are up 13.88%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release. 
<a href="https://www.benzinga.com/quote/RELL/earnings">To track all earnings releases for Richardson Electronics visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Richardson Electronics's Earnings Outlook

<a href="https://www.globenewswire.com/Tracker?data=oPvk_O5rxICz-R0D32KLHC7DqvfLEL7bInTGHQ3m35xVLjn8I63b331I3GvRsXAI_WZzTw6O62Ymo71lmS4oYgfU7OZoO_4Ce6ICy9XgRXE=">Richardson Electronics, Ltd.</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>), a global leader in engineered solutions, today announced a global distribution agreement with <a href="https://www.globenewswire.com/Tracker?data=zLswEJ6kM-0WK3SRJF9i4RLTHBip21DEYoMW17WBwAfo98MgvC6XTPBQBXk2QF7s7nIjVfVwUn2i94hIpTQI0A==">Quantic MWD</a> (Microwave Dynamics), a business of Quantic&#xAE; Electronics and a manufacturer of precision microwave and millimeter wave solutions. This new technology partnership network will enhance the accessibility of Quantic MWD's products to a broad range of customers. Quantic's solutions maximize stability and minimize noise under extreme environmental conditions, whether in space, defense, or industrial applications. &nbsp;

Richardson Electronics Expands Portfolio With Quantic MWD's Microwave And Millimeter Wave Products

Quantic Electronics And Richardson Electronics Announce Global Partnership To Expand Access To Cutting-Edge Capacitor Technologies For Aerospace And Defense Systems

<a href="https://www.globenewswire.com/Tracker?data=jiMw_0XYb2uDzbE5YPyDawQw7dNc9iVbX4RatX0RiNlF_3Q1_GyYVCsUcWem3oRIE8C3DHf34JGPaPGubf7j6YfkWpbecmfq0pfGtgnAgqM=">Richardson Electronics, Ltd.</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>), a global leader in engineered solutions, today announced a global distribution agreement with Quantic&#xAE; Electronics ("Quantic"), a portfolio company of Arcline Investment Management. This strategic partnership encompasses Quantic's premier US-based capacitor businesses: Quantic&#x2122; Evans, Quantic&#x2122; Eulex, Quantic&#x2122; Paktron, and Quantic&#x2122; UTC.
This collaboration brings together Richardson's unparalleled distribution network and Quantic's state-of-the-art capacitor technologies, significantly expanding access to mission-critical capacitors for defense, aerospace, space, communications, and industrial applications worldwide.

Richardson Electronics And Quantic Electronics Forge Global Technology Partnership Encompassing Quantic's Premier US-Based Capacitor Businesses: Quantic Evans, Quantic Eulex, Quantic Paktron, And Quantic UTC

A large exercise of company stock options by Wendy Diddell, COO at Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) was disclosed in a new SEC filing on July 24, as part of an insider exercise.
What Happened: Diddell, COO at Richardson Electronics, exercised stock options for 0 shares of RELL stock. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000355948/000095017024086001//Archives/edgar/data/355948/000095017024086001/0000950170-24-086001-index.htm">U.S. Securities and Exchange Commission</a> on Wednesday. The exercise price of the options was $0.0 per share.
Richardson Electronics shares are trading, exhibiting up of 3.5% and priced at $11.52 during Thursday's morning. This values Diddell's 0 shares at $0.
<h3>Unveiling the Story Behind Richardson Electronics</h3>
Richardson Electronics Ltd provides engineered solutions, power grid, and microwave tubes and related consumables, power conversion, RF and microwave components, high-value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment and customized display solutions. Its products have applications in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company segments include PMT (Power and Microwave Technologies Group), Canvys, (Green Energy Solutions) GES, and Healthcare reportable segments. The company derives the majority of its revenues from the PMT segment.
<h3>Unraveling the Financial Story of Richardson Electronics</h3>
Revenue Challenges: Richardson Electronics's revenue growth over 3 months faced difficulties. As of 29 February, 2024, the company experienced a decline of approximately -25.57%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: The company sets a benchmark with a high gross margin of 29.47%, reflecting superior cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Richardson Electronics's EPS reflects a decline, falling below the industry average with a current EPS of 0.05.
</li>
</ul>
Debt Management: Richardson Electronics's debt-to-equity ratio is below the industry average at 0.02, reflecting a lower dependency on debt financing and a more conservative financial approach.
Assessing Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 38.41, Richardson Electronics's stock is perceived as being overvalued in the market.
</li>
<li>
Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 0.78 as compared to the industry average, the stock might be considered overvalued based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Richardson Electronics's EV/EBITDA ratio stands at 23.38, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Why Insider Transactions Are Important</h3>
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Transaction Codes Worth Your Attention</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000355948">Check Out The Full List Of Richardson Electronics's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Breaking Update: Wendy Diddell Engages In Options Exercise At Richardson Electronics

A significant insider transaction involving the exercise of company stock options was reported on July 24, by Robert J Ben, CFO at Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>), as per the latest SEC filing.
What Happened: The latest Form 4 filing on Wednesday with the <a href="https://www.sec.gov/Archives/edgar/data/0000355948/000095017024086007//Archives/edgar/data/355948/000095017024086007/0000950170-24-086007-index.htm">U.S. Securities and Exchange Commission</a> uncovered Ben, CFO at Richardson Electronics, exercising stock options for 0 shares of RELL. The total transaction was valued at $0.
The latest update on Thursday morning shows Richardson Electronics shares up by 3.5%, trading at $11.52. At this price, Ben's 0 shares are worth $0.
<h3>All You Need to Know About Richardson Electronics</h3>
Richardson Electronics Ltd provides engineered solutions, power grid, and microwave tubes and related consumables, power conversion, RF and microwave components, high-value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment and customized display solutions. Its products have applications in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company segments include PMT (Power and Microwave Technologies Group), Canvys, (Green Energy Solutions) GES, and Healthcare reportable segments. The company derives the majority of its revenues from the PMT segment.
<h3>Richardson Electronics: Delving into Financials</h3>
Decline in Revenue: Over the 3 months period, Richardson Electronics faced challenges, resulting in a decline of approximately -25.57% in revenue growth as of 29 February, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Key Insights into Profitability Metrics:
<ul>
<li>
Gross Margin: With a high gross margin of 29.47%, the company demonstrates effective cost control and strong profitability relative to its peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Richardson Electronics exhibits below-average bottom-line performance with a current EPS of 0.05.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02.
Assessing Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Richardson Electronics's current Price to Earnings (P/E) ratio of 38.41 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 0.78 is above industry norms, reflecting an elevated valuation for Richardson Electronics's stock and potential overvaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): A high EV/EBITDA ratio of 23.38 reflects market recognition of Richardson Electronics's value, positioning it as more highly valued compared to industry peers.
</li>
</ul>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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<h3>Navigating the Impact of Insider Transactions on Investments</h3>
Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
<h3>Breaking Down the Significance of Transaction Codes</h3>
When it comes to transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000355948">Check Out The Full List Of Richardson Electronics's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Breaking Update: Robert J Ben Engages In Options Exercise At Richardson Electronics

On July 24, it was revealed in an SEC filing that Edward J Richardson, Chairman &amp; CEO at Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) executed a significant exercise of company stock options.
What Happened: Richardson, Chairman &amp; CEO at Richardson Electronics, made a strategic move by exercising stock options for 0 shares of RELL as detailed in a Form 4 filing on Wednesday with the <a href="https://www.sec.gov/Archives/edgar/data/0000355948/000095017024086035//Archives/edgar/data/355948/000095017024086035/0000950170-24-086035-index.htm">U.S. Securities and Exchange Commission</a>. The transaction value amounted to $0.
The Thursday morning update indicates Richardson Electronics shares up by 3.5%, currently priced at $11.52. At this value, Richardson's 0 shares are worth $0.
<h3>About Richardson Electronics</h3>
Richardson Electronics Ltd provides engineered solutions, power grid, and microwave tubes and related consumables, power conversion, RF and microwave components, high-value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment and customized display solutions. Its products have applications in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company segments include PMT (Power and Microwave Technologies Group), Canvys, (Green Energy Solutions) GES, and Healthcare reportable segments. The company derives the majority of its revenues from the PMT segment.
<h3>Unraveling the Financial Story of Richardson Electronics</h3>
Revenue Growth: Richardson Electronics's revenue growth over a period of 3 months has faced challenges. As of 29 February, 2024, the company experienced a revenue decline of approximately -25.57%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Key Profitability Indicators:
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Gross Margin: The company maintains a high gross margin of 29.47%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Richardson Electronics's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.05.
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</ul>
Debt Management: With a below-average debt-to-equity ratio of 0.02, Richardson Electronics adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: Richardson Electronics's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 38.41.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.78 is above industry norms, reflecting an elevated valuation for Richardson Electronics's stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): A high EV/EBITDA ratio of 23.38 positions the company as being more valued compared to industry benchmarks.
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Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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<h3>The Relevance of Insider Transactions</h3>
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>A Deep Dive into Insider Transaction Codes</h3>
When dissecting transactions, the focal point for <a href="https://www.benzinga.com/money/investing-tools">investors</a> is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000355948">Check Out The Full List Of Richardson Electronics's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options Exercise Activity Initiated By Edward J Richardson At Richardson Electronics

Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) reported quarterly earnings of $0.02 per share which beat the analyst consensus estimate of $(0.04) by 150 percent. The company reported quarterly sales of $47.374 million which missed the analyst consensus estimate of $48.010 million by 1.32 percent. This is a 19.48 percent decrease over sales of $58.832 million the same period last year.

Richardson Electronics Q4 2024 Adj EPS $0.02 Beats $(0.04) Estimate, Sales $47.374M Miss $48.010M Estimate

Northland Capital Markets initiates coverage on Richardson Electronics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) with a Outperform rating and announces Price Target of $13.

Price Target

Initiation

Analyst Ratings

Northland Capital Markets Initiates Coverage On Richardson Electronics with Outperform Rating, Announces Price Target of $13

Although U.S. stocks closed higher on Tuesday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#8217;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/">Benzinga&#8217;s insider transactions</a> platform.
<h3 class="wp-block-heading">Lovesac</h3>
<ul>
<li>The Trade: The Lovesac Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOVE#NASDAQ">LOVE</a>) EVP and CFO Keith R. Siegner <a href="https://www.benzinga.com/quote/LOVE/analyst-ratings">acquired a total of 4,800 shares</a> at an average price of $20.81. To acquire these shares, it cost around $99,864.</li>
<li>What's Happening: On April 17, Maxim Group analyst Tom Forte initiated coverage on Lovesac with a Buy rating and announced a price target of $36.</li>
<li>What Lovesac Does: The Lovesac Co designs, manufactures and sells alternative furniture which is comprised of modular couches called sactionals and premium foam beanbag chairs called sacs.</li>
</ul>
<h3 class="wp-block-heading">Citi Trends</h3>
<ul>
<li>The Trade: Citi Trends, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTRN#NASDAQ">CTRN</a>) 10% owner Pleasant Lake Partners LLC acquired a total of 65,495 shares at an average price of $22.07. To acquire these shares, it cost around $1.45 million.</li>
<li>What's Happening: On March 19, Citi Trends reported worse-than-expected fourth-quarter financial results.</li>
<li>What Citi Trends Does: Citi Trends Inc is a retailer of urban fashion apparel and accessories in the United States.</li>
</ul>
Don&#8217;t forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
<h3 class="wp-block-heading">Richardson Electronics</h3>
<ul>
<li>The Trade: Richardson Electronics, Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RELL#NASDAQ">RELL</a>) Director Kenneth Halverson <a href="https://www.benzinga.com/sec/insider-trades/">bought a total of 2,500 shares</a> at an average price of $10.05. The insider spent around $25,123 to buy those shares.</li>
<li>What's Happening: On April 10, Richardson Electronics posted upbeat quarterly earnings.</li>
<li>What Richardson Electronics Does: Richardson Electronics Ltd provides engineered solutions, power grid, and microwave tubes and related consumables, power conversion, RF and microwave components, high-value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment and customized display solutions.</li>
</ul>
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