2iQ Insider Brief: Resideo Technologies (REZI: US)

Desislav Delchev 16 June 2020

Resideo Technologies (REZI: US)

12-month performance: -58%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors
Recent news: Appointed new CEO and CFO

Resideo Technologies is a US-based company that specialises in smart home solutions. Its solutions, which include temperature control systems, ventilation systems, and home security systems, can be found in over 150 million homes. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $1.1 billion.

Resideo Technologies has undergone a major restructuring within its management team over the last month. On 19 May, the company announced that it had appointed Jay Geldmacher as President and CEO. Geldmacher succeeds Mike Nefkens, whose departure was announced in December. Geldmacher was recently President and CEO of Electro Rent Corp, a leader in testing and technology solutions. Then, on 29 May, the group announced that it had selected Tony Trunzo to serve as its CFO, effective from 8 June. Finally, on 1 June, Resideo advised that Phillip Theodore will join the company as Chief Transformation Officer. Theodore has more than 30 years of operational and transformation experience and will work closely with Resideo's leadership team and its board to advance the company’s Financial and Operational (F&O) review and execution.

resideo tech chart                         Source: 2iQ Research

What looks interesting here is the fact that since these managerial appointments have been made, the Chairman of Resideo and a number of board members have purchased REZI shares. Between 4 June and 10 June, we observed purchases from four different insiders, including large purchases from both Chairman Roger Fradin (approximately $1 million worth of stock) and Lead Independent Director Andrew Teich (approx $500,000 worth of stock). This buying activity suggests that the board is confident about the future after these recent appointments. We see this insider buying activity as a bullish signal.

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

* Image by Resideo Technologies

Getting the most of Insider Trading Data - Free Book