CD&R Keeps Buying Resideo Technologies, Adds Another $63 Million in Stock

Company Overview - Resideo Technologies provides smart home, security, and comfort solutions with a global distribution network and a diversified product portfolio [5] - The company operates through two segments: Products & Solutions, which manufactures and sells proprietary products, and ADI Global Distribution, which distributes a broad portfolio of security and connected home products [8] - As of February 6, 2026, Resideo's market capitalization is $5.44 billion, with a revenue of $7.44 billion and a net income of -$640 million [4] Recent Transactions - Clayton, Dubilier & Rice (CD&R) increased its stake in Resideo Technologies by 1,689,758 shares, with an estimated transaction value of approximately $62.53 million [1] - This buy brings CD&R's stake in Resideo Technologies to 88.4% of 13F reportable AUM as of December 31, 2025 [2] - The fund's quarter-end position value in Resideo decreased by $47.74 million, reflecting both new purchases and stock price movements [1] Stock Performance - As of February 6, 2026, Resideo shares were trading at $36.38, up 65.3% over the past year, outperforming the S&P 500 by 53 percentage points [3] - The combined company is trading at just 0.7 times sales and an EV/EBITDA ratio of 11, indicating minimal upside priced into the stock [9] Strategic Insights - CD&R's continued investment in Resideo for the third consecutive quarter suggests confidence in the company's potential, especially with an upcoming spinoff [6] - The spinoff is seen as an opportunity for CD&R to enhance operations and streamline processes, as Resideo and ADI focus on adjacent yet different niches in the Internet of Things [6][9]