Tech Stock In NYSE Gutter After Guidance Cut, CFO Change

REZI is overdue for more bearish analyst attention, too

The shares of Resideo Technologies Inc (NYSE:REZI) are in the New York Stock Exchange's cellar this morning, down 40% to trade at $9.16, and earlier touching a record low of $8.61. The electric components company -- a residential technology spin-off of Honeywell (HON) -- cut its fiscal year revenue growth yesterday, while also announcing that CFO Joseph Ragan will step down on Nov. 7. As if that wasn't enough, Oppenheimer piled on and cut its rating on REZI to "perform" from "outperform."

Should today's results hold, this would be the stock's worst single-session drop on record. The $13 level -- home to REZI's Sept. 3 record low -- has been breached, an area that contained a pullback earlier this month. The equity's year-to-date damage is now up to 65%, and has dug out a channel of lower highs and lows since last year's Oct. 29 dividend spin-off.

Anyone looking for an explanation of the sudden pivot could note that REZI's 14-day Relative Strength Index (RSI) was coming in at 60 as of yesterday's close, on the cusp of overbought territory. In other words, the shares were due for a short-term breather.

There could be more pressure to come from a shift in analyst attention. That's because all three of the brokerages in coverage, prior to today, rate REZI a "strong buy," and the consensus 12-month price target of $23 was a 51% premium to last night's closing perch at $15.23.