The Richardson Electronics Ltd. (RELL) shares are trading at higher $4.21.
To add more color to this target, the company’s high over the last year is $6.32 and the low is $3.10. Over the last 52 weeks, RELL is down -33.39% while the S&P 500 is up 0.46%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, RELL reported a profit of $12.67 million. Richardson Electronics Ltd. also saw revenues increase to $38.25 million. In addition, RELL has free cash flow of -$3.6 million as of 02-2020 The company’s EBITDA came in at $0.87 million which compares well with its peers.
RELL booked profit margins of -4.30%, its Return on Equity (ROE) is -5.70%, and its Return on Assets is -4.60%. All told, it is clear that, RELL needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. RELL has a short ratio of 0.34 and outstanding shares of 13.14M.
RELL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 11250.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.53. Richardson Electronics Ltd. RELL also noted assets of $151.41 million at the end of the last quarter. Investors should also keep an eye on sector updates as RELL has historically followed its peers on positive news.
All told, Richardson Electronics Ltd. RELL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, RELL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Richardson Electronics Ltd. RELL is now commanding a market cap of 56.41M and a float of 10.33M. RELL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of RELL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in RELL, either long or short, and we have not been compensated for this article.