Principal Financial Group Reduces Stake in Resideo Technologies

Principal Financial Group Inc. has reduced its stake in Resideo Technologies, Inc. (NYSE: REZI) by 10.2% during the third quarter of 2023. This reduction was disclosed in a filing with the Securities and Exchange Commission (SEC). As of the latest report, Principal Financial held 660,948 shares of Resideo, following the sale of 75,395 shares during the quarter, which is valued at approximately $28.54 million.

The trend of institutional investment activity surrounding Resideo Technologies indicates a mix of buying and selling among various hedge funds. For example, ORG Partners LLC significantly increased its stake by 588.2%, acquiring an additional 500 shares to reach a total of 585 shares, now valued at about $25,000. Similarly, Cullen Frost Bankers Inc. raised its holdings by an impressive 1,778.8%, owning 620 shares valued at $27,000 after purchasing 587 shares during the same period.

Another noteworthy change came from Salomon & Ludwin LLC, which boosted its holdings by an astounding 3,591.2%, acquiring 1,255 shares worth $54,000. Additionally, Headlands Technologies LLC entered the scene with a new stake valued at $34,000, while IFP Advisors Inc. grew its position by 37.6% during the second quarter, now owning 3,341 shares valued at $81,000. Overall, institutional investors and hedge funds own approximately 91.71% of Resideo’s stock.

Insider Activity and Recent Transactions

In related developments, significant insider activity has been reported. On November 13, 2023, major shareholder Channel Holdings II L.P. acquired 566,758 shares at an average price of $31.82 per share, totaling approximately $18.03 million. This transaction increased their ownership to 14,960,492 shares, valued at around $476 million, marking a 3.94% increase in their stake.

Moreover, on November 10, 2023, Director Andrew C. Teich purchased 8,149 shares at an average price of $30.68 per share, with a total cost of about $250,011. Following this acquisition, Teich’s total holdings rose to 340,621 shares, valued at approximately $10.45 million, representing a 2.45% increase in his position. Over the past quarter, insiders have acquired a total of 1,697,907 shares valued at approximately $53.22 million, while insiders collectively own 1.50% of the company’s stock.

Stock Performance and Market Outlook

As of the latest trading session, Resideo Technologies shares opened at $36.38, and the company has a market capitalization of $5.45 billion. The stock’s price-to-earnings ratio stands at -7.77, with a beta of 1.73. Resideo’s 50-day and 200-day simple moving averages are $35.59 and $35.49, respectively. The stock has experienced a 52-week low of $14.18 and a high of $45.29.

On November 5, 2023, Resideo Technologies reported its quarterly earnings, revealing earnings per share (EPS) of $0.89, surpassing analysts’ expectations of $0.71 by $0.18. The company achieved a return on equity of 14.96%, despite a negative net margin of 8.85%. The reported revenue for the quarter was $1.86 billion, slightly below expectations of $1.88 billion, but reflecting a 2.0% year-over-year increase from the previous quarter’s revenue.

Looking ahead, analysts predict that Resideo Technologies will post earnings of $2.13 per share for the current fiscal year. Headquartered in Austin, Texas, Resideo Technologies is a global provider of home comfort, security, and energy management solutions, having established itself as an independent entity following its spin-off from Honeywell in 2018. The company focuses on delivering a range of connected products and services, including smart thermostats, security systems, and indoor air quality monitors.