SCHEDULE: CD&R Boosts Resideo Stake to 18.3%

Sentiment:

Beneficial Ownership Update 18 August 2025 8:03 PM

📋All filings for Resideo Technologies, INC

CD&R Channel Holdings II and affiliated entities have increased their beneficial ownership in Resideo Technologies, Inc. to 18.3% through recent common stock purchases.

Summary

CD&R Channel Holdings II, CD&R Investment Associates XII, Ltd., and CD&R Associates XII, L.P. collectively beneficially own 30,650,397 shares of Resideo Technologies, Inc. Common Stock, representing 18.3% of the outstanding class.
This ownership includes 18,517,830 shares of Common Stock issuable upon conversion of 498,500 shares of Series A Cumulative Convertible Participating Preferred Stock, held by CD&R Channel Holdings, L.P., at an initial conversion price of $26.92.
Additionally, 12,132,567 shares of Common Stock are directly held by CD&R Channel Holdings II, L.P.
The percentage ownership is calculated based on 148,763,403 shares of Common Stock outstanding as of July 28, 2025, plus the 18,517,830 shares issuable upon preferred stock conversion, totaling 167,281,233 shares.
CD&R Channel Holdings II, L.P. made several purchases of Common Stock between August 8, 2025, and August 18, 2025, acquiring a total of 2,208,187 shares at weighted average prices ranging from $27.3003 to $31.8884.

Sentiment

Score: 7

Explanation: The increased beneficial ownership and recent common stock purchases by a prominent investment firm suggest a positive outlook or confidence in Resideo Technologies, Inc.

Positives

The increased beneficial ownership by a prominent investment firm like Clayton, Dubilier & Rice suggests a vote of confidence in Resideo Technologies, Inc.'s future prospects.
Recent open market purchases of common stock by CD&R Channel Holdings II indicate active accumulation at various price points, potentially signaling a belief in the company's undervaluation or growth potential.

Risks

Certain reporting persons and individuals, including CD&R Holdings II, CD&R Investment Associates, Donald J. Gogel, and Nathan K. Sleeper, expressly disclaim beneficial ownership of some reported securities, which is a standard legal disclaimer but highlights the complex ownership structure.

Future Outlook

Industry Context

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Investment Decision Process	Investment and voting decisions for the reported securities are made by majority vote of an investment committee of limited partners of CD&R Associates, consisting of more than ten individuals who are also investment professionals of Clayton, Dubilier & Rice, LLC.	NA	Centralizes decision-making for the reported stake within a professional investment committee, indicating a structured approach to managing the investment.

Stakeholder Impact

Shareholders: Increased institutional ownership by a significant investment firm may be viewed positively, potentially signaling confidence in the company's value and future performance.
Company Management: The substantial stake held by CD&R could lead to increased engagement or influence from the investment firm on strategic decisions.

Key Dates

Date	Description
2024-06-24	Initial Statement on Schedule 13D filed with the SEC.
2024-11-27	First amendment to the Schedule 13D filed.
2025-05-09	Second amendment to the Schedule 13D filed.
2025-07-25	Third amendment to the Schedule 13D filed.
2025-07-28	Date as of which 148,763,403 shares of Common Stock were outstanding, as reported in the Issuer's Form 10-Q.
2025-08-05	Date the Issuer's Form 10-Q was filed, reporting shares outstanding as of July 28, 2025.
2025-08-08	CD&R Holdings II purchased 448,887 shares of Common Stock at a weighted average price of $27.3003.
2025-08-11	CD&R Holdings II purchased 457,508 shares of Common Stock at a weighted average price of $27.3366.
2025-08-12	CD&R Holdings II purchased 91,417 shares at $30.0345, 216,432 shares at $30.9423, and 31,879 shares at $31.4902.
2025-08-14	CD&R Holdings II purchased 203,161 shares of Common Stock at a weighted average price of $31.8884.
2025-08-15	Date of event which requires filing of this statement; CD&R Holdings II purchased 339,863 shares of Common Stock at a weighted average price of $31.4172.
2025-08-18	CD&R Holdings II purchased 111,000 shares of Common Stock at a weighted average price of $31.6568; Date of filing of this Amendment No. 4.

Recommendation

hold

The filing indicates a significant increase in beneficial ownership by a major investment firm, suggesting confidence in the company's prospects. However, without additional financial performance data, a 'hold' recommendation is prudent, acknowledging the positive signal while awaiting further fundamental insights.

Keywords

Resideo Technologies, CD&R, Schedule 13D, beneficial ownership, common stock, preferred stock, institutional investment, equity stake, corporate governance

Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.