Resideo Technologies delivers comfort and security solutions worldwide, leveraging established brands and a broad distribution network.On February 13, 2026, Alta Fox Capital Management disclosed a new position in Resideo Technologies (REZI +0.62%), acquiring 1,266,700 shares in the fourth quarter—an estimated $44.49 million trade based on quarterly average pricing.What happenedAccording to a SEC filing dated February 13, 2026, Alta Fox Capital Management established a new position in Resideo Technologies by ...

Resideo Technologies ( REZI ), which provides comfort, energy management, and safety and security solutions, displays an interesting journey. It has scaled its B2B platform by leveraging customer stickiness. It taps into the Connected Home growthI have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I ...

What happened According to a Securities and Exchange Commission (SEC) filing dated Feb. 9, 2026, Clayton, Dubilier & Rice, LLC (CD&R) increased its stake in Resideo Technologies (NYSE:REZI) by 1,689,758 shares. The estimated transaction value, based on the average quarterly closing price, was approximately $62.53 million. The fund's quarter-end position value in Resideo Technologies decreased by $47.74 million, reflecting both new purchases and stock price movements. What else to know This buy brings th ...

Core Insights - Resideo Technologies has won two 2026 IoT Breakthrough Awards for its Honeywell Home X8S smart thermostat and First Alert CX4 video cameras, highlighting its innovation in connected technology [1][3] Company Overview - Resideo is a leading global provider of home comfort, safety, and security solutions, with a strong presence in over 150 million residential and commercial spaces worldwide [5] - The company sells tens of millions of new devices annually and has over a century of proven expertise in the industry [5] Product Recognition - The Honeywell Home X8S smart thermostat was awarded "Smart Heating and Cooling Product of the Year" for its advanced features, including live video streaming, precision sensing, and indoor air quality monitoring [8] - The First Alert CX4 video cameras received the title of "Connected Home Camera Product of the Year" for their high-quality video and flexible installation options, enhancing home security [8] Industry Impact - The 2026 IoT Breakthrough Awards evaluated nearly 4,000 nominations, emphasizing Resideo's leadership in the smart home ecosystem and its commitment to delivering technology that addresses real-world problems [3]

Core Viewpoint - Resideo Technologies, Inc. is set to release its fourth quarter and full year 2025 financial results on February 24, 2026, with a subsequent webcast to discuss these results [1][2]. Company Overview - Resideo is a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for both residential and commercial markets [2]. - The company specializes in home heating, ventilation, and air conditioning controls, smoke and carbon monoxide detection, home safety, fire suppression products, and security markets [2]. - Resideo's solutions and services are utilized in over 150 million residential and commercial spaces worldwide, with tens of millions of new devices sold annually [2].

Industry Overview - The Zacks Security and Safety Services industry is positioned to benefit from strong demand for security products and solutions due to increasing awareness of safety for people and infrastructure [1] - The industry includes firms providing sophisticated security solutions for residential, commercial, and institutional purposes, including personal defense and vehicle recovery [3] Demand Drivers - Growing instances of terrorism and criminal activities are driving demand for security services, with rapid deployment of IP-based cameras enhancing safety and surveillance [4] - The rise in hacking incidents is increasing demand for Internet security products such as firewalls and intrusion detection systems [4] - E-commerce platforms are creating new opportunities for industry players [4] Government Support - Strong budgetary provisions and government funds are encouraging significant investments in research and development for advanced security products [5] - Collaboration between government agencies and industry participants is strengthening the security infrastructure of smart cities [5] Financial Metrics - The industry's long-term debt/capital ratio is 0.61, significantly higher than the Zacks S&P 500 composite index's 0.27, indicating a focus on innovation and product development [6] - The industry currently carries a Zacks Industry Rank of 97, placing it in the top 40% of 244 Zacks industries, indicating solid near-term prospects [7][8] Performance Comparison - Over the past year, the industry has increased by 14%, underperforming the S&P 500's 17.7% and the broader Industrial Products sector's 14.1% [9] Valuation - The industry is trading at a forward P/E of 16.89X, lower than the S&P 500's 23.36X and the sector's 21.57X, suggesting potential undervaluation [12] Notable Companies - **Intellicheck (IDN)**: A technology company benefiting from a strong customer base and demand for identity verification technology, with shares up 120.2% in the past year [16][17] - **Allegion (ALLE)**: A global provider of security products, well-positioned due to strong demand in the Americas and strategic acquisitions, with shares gaining 25.5% in the past year [20][21] - **Resideo Technologies (REZI)**: Engaged in home safety and security products, poised to benefit from demand for connected smoke detectors, with shares up 48.4% in the past year [24][25] - **Napco Security (NSSC)**: Provides electronic security systems, benefiting from growth in equipment revenues, with shares gaining 6.5% in the past year [28][29]

Core Insights - Resideo Technologies, Inc. is a prominent provider of residential comfort and security solutions, leveraging its distribution network and recognized brands to meet the needs of commercial and residential customers [1] - The company operates through two segments: Products & Solutions and ADI Global Distribution, generating revenue from product sales and distribution [2] - Resideo's stock (REZI) has increased by 48% over the past year, significantly outperforming the S&P 500, which rose by 15% in the same period [2] Financial Performance - Resideo reported record net income of $156 million, a remarkable increase of 680% year over year, and record adjusted EBITDA of $229 million, up 21% [5] - Gross margins approached nearly 30%, with both operating segments expanding margins, indicating strong execution rather than temporary cost cuts [5] Investment Activity - BeaconLight Capital reduced its stake in Resideo by approximately 176,000 shares, but the remaining shares valued at $27.85 million still represent 13.74% of the fund's total reportable U.S. equity assets of $202.73 million [3][4] - Despite the reduction, Resideo remains BeaconLight's largest position, suggesting a disciplined approach to portfolio management rather than a loss of confidence in the company [6] Market Context - Resideo is positioned within a portfolio concentrated in industrials, materials, and infrastructure, aligning well as a cash-generating, asset-heavy business linked to essential housing and safety systems [7] - Management has guided for up to $832 million in full-year adjusted EBITDA, indicating a positive outlook for the company's financial performance [7]

Core Insights - The smart home security market is experiencing a significant transformation as AI evolves from a mere buzzword to a key business driver [2] Company Summaries - **ADT**: Operates a traditional monitoring model with 6.5 million customers, generating $5.11 billion in annual revenue, including $1.10 billion from recurring monitoring subscriptions. The company is focusing on the ADT+ platform, integrating AI through a partnership with Google [3][7] - **Resideo Technologies**: Offers hardware solutions under brands like Honeywell Home and First Alert, with annual revenue of $7.44 billion. The company focuses on HVAC controls and home safety equipment rather than monitoring services [4][9] - **Arlo Technologies**: Specializes in security cameras with Wi-Fi and cellular connectivity, generating $510 million in annual revenue from camera sales and optional cloud storage subscriptions [5] - **Google**: Functions as both a competitor and collaborator in the smart home market, with its Nest product line competing in hardware while partnering with ADT to provide AI capabilities. Google's involvement is relatively minor compared to its overall business [6] Business Model Comparisons - Revenue stability is a key differentiator among these companies. ADT's monitoring business yields predictable monthly income with 25.7% operating margins, resulting in $2.66 billion in EBITDA over the past year [7] - Google's stock has increased by 60% year-to-date, while ADT's stock has risen by 21%, indicating market preference for AI providers over traditional monitoring operators [8] - ADT's recurring monitoring generates $1.10 billion with 25.7% operating margins, while Arlo's $510 million revenue results in only 0.84% profit margins. ADT's earnings growth of 24.7% surpasses its revenue growth of 4.4%, suggesting that AI enhances profitability more than expansion [8]

Core Insights - Permian Investment Partners has initiated a new position in Resideo Technologies, acquiring 965,936 shares valued at approximately $41.7 million as of the end of the third quarter [1][2]. Company Overview - Resideo Technologies is a leading provider of comfort and security solutions, with a market capitalization of $5.4 billion and a revenue of $7.4 billion over the trailing twelve months (TTM) [4][5]. - The company reported a net income of -$640 million TTM, indicating a loss [4]. Financial Performance - In the third quarter, Resideo achieved $1.86 billion in revenue, reflecting a 2% year-over-year increase, and recorded a gross margin of 29.8%, which is up 110 basis points year-over-year [9]. - The adjusted EBITDA for the same period was $229 million, representing a 21% increase from the previous year, with net income rising to $156 million [9]. Market Position - Resideo's shares have increased by 39% over the past year, significantly outperforming the S&P 500, which rose by 13% during the same period [3]. - The new position in Resideo represents about 4.7% of Permian's total reportable U.S. equity assets, which amount to $885.7 million as of September 30 [3]. Product and Service Offering - Resideo offers a diverse range of products, including temperature and humidity controls, security panels, sensors, and related software under the Honeywell Home brand [7]. - The company serves both commercial and residential markets, targeting contractors, OEMs, service providers, and retail channels across the U.S. and internationally [7].

Company Overview - Resideo Technologies Inc. (NYSE:REZI) is recognized as one of the best industrial stocks to buy, holding a consensus Moderate Buy rating with an average target price of $44, indicating a potential upside of 30.45% [1] - The company specializes in smart home technology, including thermostats, smoke detectors, security systems, and water management, and operates ADI Global Distribution, a major wholesale distributor of security and low-voltage products [5] Product Launch - On December 3, Resideo launched the Honeywell Home X8S Smart Thermostat, priced at $219.99, featuring live video streaming from compatible doorbell cameras and monitoring capabilities for indoor air quality [2] Strategic Developments - At the Baird Global Industrial Conference on November 12, Resideo's CFO announced plans to separate the Products and Solutions unit from the ADI distribution business to provide investors with clearer operational insights [3] - The company is currently facing short-term pressures from a new ERP system at ADI, which has negatively impacted EBITDA by approximately $15 million in Q3 and is expected to do the same in Q4, alongside a decline in HVAC-related air product sales [3] Financial Performance - Resideo reported $7.5 billion in revenue and a 10.5% adjusted EBITDA margin over the past year, despite the challenges faced [3] Future Outlook - Leadership remains optimistic about growth in non-HVAC products, the launch of the Elite Pro thermostat to compete with Nest and Ecobee, and improved margins following the Snap One deal [4] - The company anticipates mid-single-digit revenue growth and better margins in the coming years, supported by business separation, supply chain improvements, new product launches, and a strong balance sheet [4]