Resideo Technologies (NYSE:REZI) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Resideo Technologies from “hold” to “strong sell,” adding to a mixed analyst picture that still leaves the stock with a consensus Hold rating and an average price target of $49.
• Shares of REZI rose 9.1% on Thursday to open at $33.87, well below the stock’s 52-week high of $45.29 but above its 52-week low of $22.93.
• Resideo’s latest earnings beat expectations, with $0.65 EPS on $1.91 billion in revenue, and the company raised guidance for FY2026 while institutional investors continue to hold a large majority of the stock.

Resideo Technologies (NYSE:REZI - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Thursday,Zacks.com reports.

REZI has been the subject of a number of other reports. Weiss Ratings reiterated a "sell (d+)" rating on shares of Resideo Technologies in a research note on Tuesday, April 21st. Seaport Research Partners assumed coverage on shares of Resideo Technologies in a report on Wednesday, July 1st. They issued a "buy" rating and a $55.00 target price on the stock. Finally, Oppenheimer restated an "outperform" rating on shares of Resideo Technologies in a report on Friday, March 13th. Two equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Resideo Technologies presently has a consensus rating of "Hold" and an average target price of $49.00.

Resideo Technologies Stock Up 9.1%

REZI stock opened at $33.87 on Thursday. The firm has a market capitalization of $5.13 billion, a PE ratio of -8.82 and a beta of 1.64. The company has a quick ratio of 1.19, a current ratio of 2.07 and a debt-to-equity ratio of 1.30. Resideo Technologies has a twelve month low of $22.93 and a twelve month high of $45.29. The stock's 50 day moving average is $31.91 and its 200-day moving average is $34.78.

Resideo Technologies (NYSE:REZI - Get Free Report) last released its quarterly earnings data on Tuesday, May 12th. The company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.61 by $0.04. The company had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.87 billion. Resideo Technologies had a positive return on equity of 16.70% and a negative net margin of 6.71%.Resideo Technologies's revenue for the quarter was up 8.0% on a year-over-year basis. During the same period last year, the company earned $0.63 EPS. Resideo Technologies has set its FY 2026 guidance at 3.000-3.200 EPS and its Q2 2026 guidance at 0.710-0.750 EPS. Sell-side analysts expect that Resideo Technologies will post 2.81 EPS for the current fiscal year.

Institutional Investors Weigh In On Resideo Technologies

Several hedge funds and other institutional investors have recently made changes to their positions in REZI. Royal Bank of Canada boosted its holdings in shares of Resideo Technologies by 50.0% in the first quarter. Royal Bank of Canada now owns 49,395 shares of the company's stock worth $873,000 after buying an additional 16,467 shares during the last quarter. AQR Capital Management LLC increased its holdings in Resideo Technologies by 58.9% during the first quarter. AQR Capital Management LLC now owns 122,734 shares of the company's stock valued at $2,172,000 after buying an additional 45,517 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Resideo Technologies by 7.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 126,161 shares of the company's stock worth $2,233,000 after acquiring an additional 9,106 shares during the period. Millennium Management LLC raised its position in Resideo Technologies by 1,123.6% in the first quarter. Millennium Management LLC now owns 263,821 shares of the company's stock worth $4,670,000 after acquiring an additional 242,260 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Resideo Technologies by 6.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 439,149 shares of the company's stock worth $7,773,000 after acquiring an additional 26,254 shares during the last quarter. Hedge funds and other institutional investors own 91.71% of the company's stock.

About Resideo Technologies

Resideo Technologies, Inc, headquartered in Austin, Texas, is a global provider of home comfort, security and energy management solutions. Formed as an independent company in 2018 following its spin-off from Honeywell, Resideo leverages decades of engineering experience to deliver connected products and services to residential and light commercial customers.

The company’s core offerings include smart thermostats, security systems, video doorbells, water leak and freeze detection devices, and indoor air quality monitors.

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