Shares of Richardson Electronics, Ltd. (NASDAQ: RELL) surged significantly after the company announced a major strategic move. The stock rose 9.38% after-hours last Friday, trading at $14.35. This momentum followed the company’s announcement of a substantial asset sale within its healthcare division.
Strategic Sale to DirectMed Imaging Finalized
On January 24, 2025, Richardson Electronics finalized the sale of a majority of its Richardson Healthcare segment to DirectMed Imaging. This strategic transaction includes an exclusive 10-year global supply agreement under which RELL will supply repaired Siemens CT X-ray tubes to DirectMed.
Additionally, the company will manufacture ALTA CT X-ray tubes for DirectMed for approximately 12 to 18 months. The remaining operations of the Richardson Healthcare segment, primarily focused on CT X-ray tube manufacturing and repair, will be consolidated into the company’s Power and Microwave Technologies (PMT) segment.
Benefits for DirectMed and Its Customers
The acquisition enhances DirectMed’s expertise in Canon/Toshiba MRI and CT parts while expanding its inventory. Furthermore, the transaction enables DirectMed to enter the Canon/Toshiba CT training market for engineers and biomedical professionals.
DirectMed now holds exclusive global distribution rights for Richardson Electronics’ repaired Siemens Straton Z, MX, and MXP CT X-ray tubes, as well as the ALTA750 and ALTA750G CT X-ray tubes. This partnership ensures DirectMed’s customers gain access to RELL’s cutting-edge X-ray tube manufacturing infrastructure and engineering talent, offering significant value in the marketplace.
Aligning with Richardson’s Strategic Goals
This asset sale aligns with Richardson Electronics’ priorities by reallocating resources to its rapidly expanding Green Energy Solutions business. The deal simplifies RELL’s operations, improves its financial models, and allows the company to focus on high-growth markets.
Stock Performance and Market Insights
Richardson Electronics currently has an ST score of 48 on the industry screener, with a relative strength index (RSI) of 43 in the Hardware, Equipment & Parts sector. Investors often monitor RSI, where values below 30 indicate potential buy signals, while values above 70 suggest sell opportunities.
Competitor stocks such as REFR and PLXS have RSIs under 35, making them notable in this sector. For a comprehensive view of stock list with an RSI over 30 in the same industry, additional insights are available on the ST screener.