Resideo Technologies Sees Unusually High Options Volume (NYSE:REZI)

Key Points

• Resideo Technologies saw a significant increase in call options trading, with investors purchasing 2,631 call options, representing a 617% rise compared to typical volumes.
• The company's stock price increased by $0.97 to $42.36, with a market cap of $6.30 billion and a year-over-year revenue growth of 22.3% reported in their last earnings quarter.
• Brokerages have raised their target price on Resideo Technologies, with Oppenheimer increasing it from $35 to $48 and Morgan Stanley from $24 to $35, indicating a strong "outperform" rating for the stock.

Resideo Technologies, Inc. (NYSE:REZI - Get Free Report) saw some unusual options trading on Friday. Traders bought 2,631 call options on the company. This represents an increase of approximately 617% compared to the typical volume of 367 call options.

Resideo Technologies Price Performance

Shares of NYSE REZI traded up $0.26 during midday trading on Tuesday, reaching $42.39. The stock had a trading volume of 444,996 shares, compared to its average volume of 1,316,909. The stock has a 50-day moving average of $31.40 and a 200-day moving average of $23.52. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.63 and a current ratio of 1.00. The company has a market capitalization of $6.31 billion, a price-to-earnings ratio of -7.76 and a beta of 2.24. Resideo Technologies has a 12-month low of $14.18 and a 12-month high of $42.99.

Resideo Technologies (NYSE:REZI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.54 by $0.12. The firm had revenue of $1.94 billion during the quarter, compared to analysts' expectations of $1.83 billion. Resideo Technologies had a negative net margin of 10.52% and a positive return on equity of 12.55%. The company's revenue for the quarter was up 22.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.62 earnings per share. Resideo Technologies has set its FY 2025 guidance at 2.750-2.870 EPS. Q3 2025 guidance at 0.700-0.760 EPS. As a group, research analysts anticipate that Resideo Technologies will post 2.13 EPS for the current fiscal year.

Analysts Set New Price Targets

REZI has been the topic of a number of research reports. Morgan Stanley raised shares of Resideo Technologies from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $24.00 to $35.00 in a report on Tuesday, August 12th. JPMorgan Chase & Co. upped their price objective on Resideo Technologies from $20.00 to $21.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 3rd. Finally, Oppenheimer upped their price objective on Resideo Technologies from $35.00 to $48.00 and gave the stock an "outperform" rating in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.67.

Insider Activity at Resideo Technologies

In other news, Director Andrew C. Teich acquired 29,460 shares of Resideo Technologies stock in a transaction that occurred on Friday, August 29th. The stock was bought at an average price of $34.01 per share, for a total transaction of $1,001,934.60. Following the completion of the transaction, the director owned 332,472 shares in the company, valued at $11,307,372.72. The trade was a 9.72% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Channel Holdings Ii L.P. Cd&R purchased 228,573 shares of the business's stock in a transaction on Wednesday, September 3rd. The shares were purchased at an average price of $33.63 per share, with a total value of $7,686,909.99. Following the completion of the purchase, the insider owned 13,270,734 shares in the company, valued at approximately $446,294,784.42. This trade represents a 1.75% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 7,545,693 shares of company stock worth $194,098,517 and sold 136,021 shares worth $4,091,809. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Resideo Technologies

Several large investors have recently made changes to their positions in the business. Amalgamated Bank lifted its position in shares of Resideo Technologies by 1.0% in the second quarter. Amalgamated Bank now owns 42,164 shares of the company's stock valued at $930,000 after acquiring an additional 415 shares in the last quarter. QRG Capital Management Inc. raised 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 purchasing an additional 437 shares during the period. Hsbc Holdings PLC grew its holdings in Resideo Technologies by 2.5% during the 1st quarter. Hsbc Holdings PLC now owns 23,372 shares of the company's stock valued at $412,000 after buying an additional 578 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its holdings in Resideo Technologies by 0.4% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 162,259 shares of the company's stock valued at $3,579,000 after buying an additional 625 shares in the last quarter. Finally, Maryland State Retirement & Pension System grew its holdings in Resideo Technologies by 1.7% during the 2nd quarter. Maryland State Retirement & Pension System now owns 43,643 shares of the company's stock valued at $963,000 after buying an additional 742 shares in the last quarter. 91.71% of the stock is currently owned by hedge funds and other institutional investors.

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.