Resideo Technologies (NYSE:REZI) Stock Falls 6.5% - What's Next?

Key Points

• Resideo Technologies shares fell 6.5% to about $17.69, with trading volume roughly 90% below the average session volume.
• Analyst sentiment remains mixed: the stock carries an average “Hold” rating and a $35 price target, with ratings ranging from “Strong Sell” to “Outperform.”
• The company beat quarterly earnings and revenue expectations, while insiders purchased 41,245 shares worth approximately $848,115 over the past 90 days.

Resideo Technologies, Inc. (NYSE:REZI - Get Free Report)'s share price dropped 6.5% on Wednesday. The company traded as low as $17.56 and last traded at $17.6930. 159,281 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 1,629,343 shares. The stock had previously closed at $18.92.

Analyst Ratings Changes

A number of analysts recently weighed in on the company. Oppenheimer restated an "outperform" rating on shares of Resideo Technologies in a report on Thursday, August 13th. 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 shares of Resideo Technologies from a "sell (d+)" rating to a "hold (c)" rating in a research report on Friday, August 14th. Evercore initiated coverage on Resideo Technologies in a report on Monday, September 28th. They set an "outperform" rating and a $30.00 price objective for the company. Finally, JPMorgan Chase & Co. started coverage on shares of Resideo Technologies in a report on Friday, August 7th. They issued a "neutral" rating and a $30.00 target price for the company. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $35.00.

Resideo Technologies Price Performance

The company has a debt-to-equity ratio of 1.41, a current ratio of 2.22 and a quick ratio of 1.41. The firm has a market capitalization of $2.65 billion, a PE ratio of 7.73 and a beta of 1.54. The business's 50 day moving average is $21.44 and its two-hundred day moving average is $29.61.

Resideo Technologies (NYSE:REZI - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The company reported $0.83 EPS for the quarter, beating 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 business had revenue of $1.98 billion for the quarter, compared to analysts' expectations of $1.94 billion. During the same period last year, the business earned $0.66 earnings per share. The business's quarterly revenue was up 2.0% on a year-over-year basis. As a group, research analysts anticipate that Resideo Technologies, Inc. will post 2.16 EPS for the current year.

Insider Activity at Resideo Technologies

In related news, SVP Amit Mehta purchased 10,928 shares of Resideo Technologies stock in a transaction that occurred on Monday, August 17th. The shares were acquired at an average cost of $20.68 per share, for a total transaction of $225,991.04. Following the transaction, the senior vice president directly owned 57,362 shares in the company, valued at $1,186,246.16. The trade was a 23.53% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Thomas Surran purchased 15,000 shares of the firm's stock in a transaction on Friday, August 14th. The stock was bought at an average cost of $20.46 per share, for a total transaction of $306,900.00. Following the completion of the purchase, the chief executive officer directly owned 338,573 shares in the company, valued at approximately $6,927,203.58. This trade represents a 4.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 41,245 shares of company stock worth $848,115 in the last ninety days. 1.60% of the stock is owned by company insiders.

Institutional Trading of Resideo Technologies

A number of institutional investors have recently modified their holdings of the company. WINTON GROUP Ltd grew its position in shares of Resideo Technologies by 136.5% in the 2nd quarter. WINTON GROUP Ltd now owns 17,500 shares of the company's stock worth $544,000 after buying an additional 10,100 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Resideo Technologies during the 2nd quarter worth approximately $132,000. IFP Advisors Inc raised its position in shares of Resideo Technologies by 33.1% in the 2nd quarter. IFP Advisors Inc now owns 4,670 shares of the company's stock worth $145,000 after acquiring an additional 1,162 shares in the last quarter. Squarepoint Ops LLC raised its position in shares of Resideo Technologies by 85.8% in the 2nd quarter. Squarepoint Ops LLC now owns 166,835 shares of the company's stock worth $5,189,000 after acquiring an additional 77,065 shares in the last quarter. Finally, Arizona State Retirement System lifted its stake in shares of Resideo Technologies by 1.5% in the 2nd quarter. Arizona State Retirement System now owns 37,560 shares of the company's stock valued at $1,168,000 after purchasing an additional 567 shares during the period. 91.71% of the stock is currently owned by hedge funds and other institutional investors.

Resideo Technologies Company Profile

Resideo Technologies, Inc is a global provider of products and services for residential and commercial comfort, security, safety and energy management. The company develops and distributes connected home technologies, including thermostats, indoor air-quality products, water-leak detection systems, security controls, sensors and related accessories.

Resideo also operates ADI Global Distribution, a distributor of security, automation and low-voltage products serving professional installers and integrators.

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