Richardson Electronics Independent Director Acquires 17% More Stock

Even if it's not a huge purchase, we think it was good to see that Robert Kluge, the Independent Director of Richardson Electronics, Ltd. (NASDAQ:RELL) recently shelled out US$59k to buy stock, at US$11.79 per share. That purchase might not be huge but it did increase their holding by 17%.

See our latest analysis for Richardson Electronics

Richardson Electronics Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP, Wendy Diddell, sold US$204k worth of shares at a price of US$13.01 per share. So we know that an insider sold shares at around the present share price of US$11.85. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Wendy Diddell was the only individual insider to sell shares in the last twelve months.

Wendy Diddell ditched 17.49k shares over the year. The average price per share was US$12.91. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Richardson Electronics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Richardson Electronics insiders own 17% of the company, worth about US$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Richardson Electronics Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Richardson Electronics, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Richardson Electronics (1 can't be ignored!) and we strongly recommend you look at them before investing.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.