Resideo Technologies (NYSE:REZI) Trading 8.4% Higher After Earnings Beat

Key Points

• Resideo Technologies stock surged by 8.4% after reporting earnings of $0.66 per share, beating the consensus estimate of $0.54.
• The company's revenue for the quarter reached $1.94 billion, exceeding analyst expectations of $1.83 billion and reflecting a 22.3% year-over-year increase.
• Institutional investors own 91.71% of Resideo Technologies, with significant recent acquisitions from hedge funds, including Clayton Dubilier & Rice LLC's stake worth $127.29 million.

Resideo Technologies, Inc. (NYSE:REZI - Get Free Report) shares were up 8.4% on Wednesday following a stronger than expected earnings report. The company traded as high as $28.48 and last traded at $28.44. Approximately 201,785 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 1,110,377 shares. The stock had previously closed at $26.23.

The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.54 by $0.12. The business 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 business's quarterly revenue was up 22.3% on a year-over-year basis. During the same period last year, the company posted $0.62 EPS.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on REZI. JPMorgan Chase & Co. lifted their target price on shares of Resideo Technologies from $20.00 to $21.00 and gave the company a "neutral" rating in a report on Tuesday, June 3rd. Oppenheimer upgraded Resideo Technologies from a "market perform" rating to an "outperform" rating in a research note on Wednesday, July 30th.

Insider Buying and Selling at Resideo Technologies

In related news, Director Nina Richardson sold 2,790 shares of Resideo Technologies stock in a transaction on Monday, July 7th. The shares were sold at an average price of $23.68, for a total value of $66,067.20. Following the completion of the sale, the director owned 64,008 shares in the company, valued at approximately $1,515,709.44. The trade was a 4.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Robert B. Aarnes sold 47,000 shares of the stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $28.00, for a total value of $1,316,000.00. Following the transaction, the insider directly owned 503,692 shares in the company, valued at approximately $14,103,376. This represents a 8.53% decrease in their position. The disclosure for this sale can be found here. 1.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Resideo Technologies

A number of institutional investors and hedge funds have recently modified their holdings of the business. Boston Partners boosted its position in shares of Resideo Technologies by 1.6% during the first quarter. Boston Partners now owns 9,954,419 shares of the company's stock worth $175,640,000 after buying an additional 156,536 shares during the period. Ariel Investments LLC grew its stake in shares of Resideo Technologies by 5.1% in the first quarter. Ariel Investments LLC now owns 9,664,671 shares of the company's stock worth $171,065,000 after purchasing an additional 465,571 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Resideo Technologies by 2.8% during the first quarter. Dimensional Fund Advisors LP now owns 8,205,405 shares of the company's stock valued at $145,234,000 after purchasing an additional 223,063 shares during the period. Fuller & Thaler Asset Management Inc. raised its stake in shares of Resideo Technologies by 9.1% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 8,196,828 shares of the company's stock valued at $145,084,000 after purchasing an additional 683,714 shares in the last quarter. Finally, Clayton Dubilier & Rice LLC bought a new stake in shares of Resideo Technologies during the 2nd quarter worth about $127,290,000. 91.71% of the stock is owned by institutional investors and hedge funds.

Resideo Technologies Price Performance

The company has a market capitalization of $4.04 billion, a P/E ratio of -4.99 and a beta of 2.16. The business's 50-day simple moving average is $23.22 and its 200 day simple moving average is $20.46. The company has a current ratio of 1.00, a quick ratio of 1.16 and a debt-to-equity ratio of 0.93.

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.