Honeywell’s new headquarters
On November 30, Honeywell (HON) announced that it will relocate its global corporate headquarters to Charlotte, North Carolina. It also announced that its Safety and Productivity Solutions business segment’s headquarters will also be moved from Fortmill in South Carolina to Charlotte as well.
North Carolina’s Job Development Investment grant, which is expected to be passed as law, is one of the major motives to shift HON’s headquarters. As a result of the relocation of its headquarters, 150 to 200 senior management teams that were based in New Jersey and another 100 positions in South Carolina will now be moving to Charlotte. This move is expected to be completed by September 2019. HON expects to add 500 positions to its headquarters in five years.
Darius Adamczyk, chair and CEO, said, “Today’s announcement reflects our commitment to locate our corporate headquarters close to our large centers in Charlotte alongside Safety and Productivity Solutions, and Atlanta, where our Honeywell Building Technologies and Honeywell Connected Enterprise businesses are located. Charlotte is a top-10 destination city in the U.S. that will readily enable us to recruit and retain the world-class talent we will need over the long term to support Honeywell’s strategic focus on leading technology and software solutions within our end markets. We also are strong believers in supporting our communities, and we look forward to bringing Honeywell Hometown Solutions – our award-winning corporate citizenship initiative – to the Charlotte area.”
Stock price movement
Honeywell had a positive week. The stock gained ~2.4% and closed at $1,146.75 for the week ending November 30. Despite the gains, the stock traded 2.5% below the 100-day moving average price of $150.50. Honeywell outperformed the Invesco Aerospace & Defense ETF (PPA), which gained ~1.7%. PPA invests 7.1% of its portfolio in Honeywell.
The company’s 14-day RSI (relative strength index) is at 50, which indicates that the stock is very close to being overbought. An RSI of 70 and above shows that a stock has temporarily moved into the “overbought” position, while an RSI of 30 and below indicates that a stock has temporarily moved into the “oversold” position.