Morgan Stanley Upgrades Resideo Technologies (NYSE:REZI) to Overweight

Key Points

• Morgan Stanley upgraded Resideo Technologies from an "equal weight" to an "overweight" rating, raising the target price from $24.00 to $35.00, indicating a potential upside of 27.45% from the previous close.
• The company reported a $0.66 EPS for its latest quarter, surpassing the consensus estimate of $0.54 and achieving 22.3% revenue growth year-over-year.
• Insider transactions included the sale of 47,000 shares by Robert B. Aarnes, while major shareholder Channel Holdings II L.P. acquired over 4.47 million shares, reflecting significant trading activity around the stock.

Morgan Stanley upgraded shares of Resideo Technologies (NYSE:REZI - Free Report) from an equal weight rating to an overweight rating in a research note issued to investors on Tuesday morning, MarketBeat reports. Morgan Stanley currently has $35.00 target price on the stock, up from their previous target price of $24.00.

Other research analysts have also recently issued research reports about the stock. Oppenheimer upgraded shares of Resideo Technologies from a "market perform" rating to an "outperform" rating in a research note on Wednesday, July 30th. JPMorgan Chase & Co. upped their target price on shares of Resideo Technologies from $20.00 to $21.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 3rd.

Resideo Technologies Trading Down 1.6%

Shares of REZI stock traded down $0.52 on Tuesday, reaching $31.39. 2,471,046 shares of the stock were exchanged, compared to its average volume of 1,915,543. Resideo Technologies has a one year low of $14.18 and a one year high of $33.03. The stock has a 50 day moving average price of $24.36 and a 200 day moving average price of $20.76. The company has a debt-to-equity ratio of 0.93, a current ratio of 1.00 and a quick ratio of 0.63. The stock has a market cap of $4.67 billion, a PE ratio of -5.75 and a beta of 2.16.

Resideo Technologies (NYSE:REZI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.12. The company had revenue of $1.94 billion for the quarter, compared to analyst estimates of $1.83 billion. Resideo Technologies had a positive return on equity of 12.55% and a negative net margin of 10.52%. The company's revenue for the quarter was up 22.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.62 EPS. Equities research analysts forecast that Resideo Technologies will post 2.13 EPS for the current fiscal year.

Insider Transactions at Resideo Technologies

In other Resideo Technologies news, Director Nina Richardson sold 2,790 shares of the firm's stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $23.68, for a total transaction of $66,067.20. Following the sale, the director directly owned 64,008 shares of the company's stock, valued at $1,515,709.44. This trade represents a 4.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Channel Holdings Ii L.P. Cd&R purchased 339,728 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was bought at an average price of $30.75 per share, with a total value of $10,446,636.00. Following the transaction, the insider owned 11,478,543 shares of the company's stock, valued at $352,965,197.25. This represents a 3.05% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 5,724,042 shares of company stock valued at $135,201,451 and sold 132,688 shares valued at $3,976,654. Corporate insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Amalgamated Bank raised its holdings in Resideo Technologies by 1.0% in the 2nd quarter. Amalgamated Bank now owns 42,164 shares of the company's stock valued at $930,000 after acquiring an additional 415 shares during the last quarter. QRG Capital Management Inc. boosted its stake in Resideo Technologies by 4.3% during the 2nd quarter. QRG Capital Management Inc. now owns 10,565 shares of the company's stock valued at $233,000 after acquiring an additional 437 shares during the last quarter. Hsbc Holdings PLC lifted its position in shares of Resideo Technologies by 2.5% in the 1st quarter. Hsbc Holdings PLC now owns 23,372 shares of the company's stock worth $412,000 after buying an additional 578 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its holdings in shares of Resideo Technologies by 0.4% in the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 162,259 shares of the company's stock worth $3,579,000 after acquiring an additional 625 shares during the period. Finally, Summit Investment Advisors Inc. increased its holdings in shares of Resideo Technologies by 4.5% in the 4th quarter. Summit Investment Advisors Inc. now owns 15,280 shares of the company's stock worth $352,000 after acquiring an additional 663 shares during the period. Institutional investors and hedge funds own 91.71% of the company's stock.

Resideo Technologies Company Profile

Resideo Technologies, Inc develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution.