What Happened?
Shares of home automation and security solutions provider Resideo Technologies (NYSE: REZI) jumped 3.4% in the afternoon session after the company received a positive mention from Jim Cramer on CNBC's "Mad Money Lightning Round."
Cramer called the stock “interesting, even up here.” The bullish commentary shines a light on several recent positive developments for the smart home technology company. On August 12th, Morgan Stanley upgraded Resideo from “Equal-Weight” to “Overweight” and increased its price target from $24 to $35.
The shares closed the day at $38.08, up 3.7% from previous close.
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What Is The Market Telling Us
Resideo’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 29 days ago when the stock dropped 3.2% as an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
Resideo is up 67.1% since the beginning of the year, and at $38.07 per share, has set a new 52-week high. Investors who bought $1,000 worth of Resideo’s shares 5 years ago would now be looking at an investment worth $2,986.
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