Richardson Electronics, Ltd. (NASDAQ:RELL) Executive Vice President of PMT, Gregory J. Peloquin, recently sold company stock valued at over $31,000, according to a new SEC filing. The transactions occurred on May 9, 2024, and were disclosed in a Form 4 filing with the Securities and Exchange Commission.
Peloquin sold a total of 2,866 shares of common stock at weighted average prices ranging from $10.830 to $10.920 per share, with the total sale amounting to approximately $31,152. These sales were executed in multiple transactions, and the prices reported represent a weighted average. The company has made a commitment to provide full information regarding the number of shares sold at each separate price within the range upon request.
In addition to the sales, Peloquin also acquired 2,866 shares of Richardson Electronics common stock at a price of $9.99 per share on the same day, totaling around $28,631. This acquisition was related to the exercise of employee stock options, with the options having an exercise price equal to the acquisition cost.
After these transactions, Peloquin's direct ownership in the company's common stock dropped to zero, as indicated in the filing.
Richardson Electronics, headquartered in LaFox, Illinois, is a leading distributor of electronic components and a provider of engineered solutions, serving customers in the industrial, communications, and medical sectors.
Investors and market watchers often scrutinize insider transactions as they can provide insights into an executive's perspective on the company's current valuation and future prospects. However, it's important to note that trading activity by executives can be influenced by a variety of factors and does not always reflect their outlook on the company's performance.
The SEC filing provides transparency for these transactions, allowing shareholders and potential investors to stay informed about significant insider trading activities.
InvestingPro Insights
Richardson Electronics' recent insider trading activity coincides with some noteworthy financial metrics and analyst expectations. According to real-time data from InvestingPro, Richardson Electronics holds a market cap of approximately $149.5 million and is trading at a high earnings multiple, with a P/E ratio of 34.8 as of the last twelve months ending in Q3 2024. This high valuation might suggest that investors have optimistic expectations for the company's future earnings growth.
However, the company's revenue has shown a decline, with a negative revenue growth rate of -21.67% over the last twelve months as of Q3 2024. This could be a factor to consider for investors interpreting the recent insider sales. Additionally, the InvestingPro Tips indicate that analysts anticipate a sales decline in the current year, and net income is expected to drop as well.
On a more positive note, Richardson Electronics has a strong track record of maintaining dividend payments, with a history of 37 consecutive years of dividends, and a current dividend yield of 2.31%. This could be attractive to income-focused investors.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, including 10 more InvestingPro Tips for Richardson Electronics. These tips could provide a deeper understanding of the company's financial health and future prospects. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore these valuable tips at https://www.investing.com/pro/RELL.
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