Resideo Technologies (REZI) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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The CD&R Stockholder, holding approximately 11% of Resideo Technologies’ total voting power as of June 29, 2024, wields considerable influence over the company’s policies and operations due to its equity interest. With the right to appoint up to two directors to the board, CD&R’s influence extends to significant corporate decisions, including mergers and asset sales. Their role could lead to potential conflicts of interest, particularly if CD&R’s strategic goals diverge from those of other common stockholders. This influence poses a risk, as CD&R may prioritize actions that enhance their equity investment, potentially to the detriment of common stockholders.
Overall, Wall Street has a Moderate Buy consensus rating on REZI stock based on 1 Buy and 2 Holds.
To learn more about Resideo Technologies’ risk factors, click here.
