Traders Buy Large Volume of Call Options on Resideo Technologies (NYSE:REZI)

Key Points

• Call-option activity surged as traders bought 5,506 Resideo Technologies call options, roughly 1,741% above the average daily volume of 299 contracts.
• Insiders purchased 41,245 shares worth approximately $848,115 in the past quarter, while institutional investors own 91.71% of the company.
• Resideo shares fell to $18.08, near their 52-week low, despite the company exceeding quarterly earnings and revenue estimates. Analysts maintain an average “Hold” rating with a $37.50 price target.

Resideo Technologies, Inc. (NYSE:REZI - Get Free Report) was the recipient of unusually large options trading on Monday. Traders purchased 5,506 call options on the stock. This is an increase of approximately 1,741% compared to the average daily volume of 299 call options.

Insider Buying and Selling

In other news, SVP Joshua Foster acquired 15,317 shares of Resideo Technologies stock in a transaction on Friday, August 14th. The stock was acquired at an average cost of $20.58 per share, for a total transaction of $315,223.86. Following the purchase, the senior vice president owned 183,509 shares in the company, valued at $3,776,615.22. This trade represents a 9.11% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Amit Mehta bought 10,928 shares of the firm's stock in a transaction on Monday, August 17th. The stock was purchased at an average cost of $20.68 per share, with a total value of $225,991.04. Following the completion of the acquisition, the senior vice president directly owned 57,362 shares of the company's stock, valued at approximately $1,186,246.16. The trade was a 23.53% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 41,245 shares of company stock worth $848,115 in the last quarter. Corporate insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Resideo Technologies

A number of hedge funds have recently added to or reduced their stakes in REZI. BlackRock Inc. purchased a new position in shares of Resideo Technologies in the 2nd quarter worth $673,214,000. Dimensional Fund Advisors LP grew its holdings in shares of Resideo Technologies by 0.8% in the first quarter. Dimensional Fund Advisors LP now owns 7,787,434 shares of the company's stock worth $262,505,000 after acquiring an additional 64,613 shares during the period. Franklin Resources Inc. increased its position in Resideo Technologies by 51.4% during the fourth quarter. Franklin Resources Inc. now owns 2,860,308 shares of the company's stock valued at $100,454,000 after acquiring an additional 971,643 shares during the last quarter. Swedbank AB increased its position in Resideo Technologies by 13.6% during the first quarter. Swedbank AB now owns 2,665,123 shares of the company's stock valued at $89,841,000 after acquiring an additional 318,204 shares during the last quarter. Finally, Locust Wood Capital Advisers LLC lifted its holdings in Resideo Technologies by 124.6% in the fourth quarter. Locust Wood Capital Advisers LLC now owns 2,649,691 shares of the company's stock valued at $93,057,000 after acquiring an additional 1,470,077 shares during the period. 91.71% of the stock is currently owned by hedge funds and other institutional investors.

Resideo Technologies Stock Performance

Shares of NYSE REZI traded down $0.19 during trading on Monday, reaching $18.08. 327,353 shares of the company traded hands, compared to its average volume of 1,631,252. The firm has a 50 day simple moving average of $23.76 and a 200-day simple moving average of $30.39. The company has a quick ratio of 1.41, a current ratio of 2.22 and a debt-to-equity ratio of 1.41. The stock has a market capitalization of $2.75 billion, a PE ratio of 8.01 and a beta of 1.60. Resideo Technologies has a 52-week low of $17.96 and a 52-week high of $45.29.

Resideo Technologies (NYSE:REZI - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The company reported $0.83 EPS for the quarter, topping analysts' consensus estimates of $0.47 by $0.36. Resideo Technologies had a net margin of 5.37% and a return on equity of 17.79%. The firm had revenue of $1.98 billion during the quarter, compared to analyst estimates of $1.94 billion. During the same period in the previous year, the business posted $0.66 earnings per share. The business's revenue for the quarter was up 2.0% on a year-over-year basis. Equities research analysts anticipate that Resideo Technologies will post 2.5 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. JPMorgan Chase & Co. began coverage on shares of Resideo Technologies in a report on Friday, August 7th. They set a "neutral" rating and a $30.00 price target on the stock. Zacks Research lowered shares of Resideo Technologies from a "hold" rating to a "strong sell" rating in a report on Wednesday, September 9th. Weiss Ratings raised Resideo Technologies from a "sell (d+)" rating to a "hold (c)" rating in a research report on Friday, August 14th. Seaport Research Partners assumed coverage on Resideo Technologies in a research note on Wednesday, July 1st. They set a "buy" rating and a $55.00 target price on the stock. Finally, Oppenheimer reissued an "outperform" rating on shares of Resideo Technologies in a report on Thursday, August 13th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $37.50.

About Resideo Technologies

Resideo Technologies, Inc is a technology and manufacturing company that provides products and solutions for residential and commercial buildings. Its offerings are designed to improve security, comfort, energy efficiency, water management and connectivity in homes and other properties.

Through its Products and Solutions segment, Resideo supplies thermostats, heating and cooling controls, indoor air-quality products, water-management systems, security and fire products, video solutions, sensors and connected-home technologies.

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