Aberdeen Group plc Decreases Holdings in ResMed Inc. $RMD

Key Points

• Aberdeen Group plc has reduced its holdings in ResMed Inc. by 27.7%, now owning 296,552 shares valued at approximately $75.89 million after selling 113,827 shares in the second quarter.
• ResMed recently announced an increased quarterly dividend of $0.60 per share, up from the previous $0.53, representing an annualized rate of $2.40 and a dividend yield of 0.9%.
• The company's stock has seen a one-year price range of $199.92 to $293.81, with recent earnings exceeding analysts' expectations by reporting $2.55 EPS against a consensus of $2.47.

Aberdeen Group plc trimmed its holdings in shares of ResMed Inc. (NYSE:RMD - Free Report) by 27.7% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 296,552 shares of the medical equipment provider's stock after selling 113,827 shares during the quarter. Aberdeen Group plc owned 0.20% of ResMed worth $75,885,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the business. Vanguard Group Inc. raised its position in shares of ResMed by 1.8% during the 1st quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider's stock valued at $4,139,815,000 after buying an additional 320,240 shares in the last quarter. Northern Trust Corp raised its position in shares of ResMed by 2.5% during the 1st quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider's stock valued at $390,516,000 after buying an additional 41,951 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of ResMed by 4.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider's stock valued at $223,431,000 after buying an additional 41,108 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in ResMed by 2.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 977,401 shares of the medical equipment provider's stock valued at $218,791,000 after purchasing an additional 22,789 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in ResMed by 6.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 793,760 shares of the medical equipment provider's stock valued at $177,652,000 after purchasing an additional 51,348 shares during the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Stock Performance

Shares of NYSE:RMD opened at $271.96 on Friday. The firm has a market cap of $39.69 billion, a PE ratio of 28.60, a price-to-earnings-growth ratio of 1.83 and a beta of 0.83. The firm's 50 day simple moving average is $278.51 and its 200-day simple moving average is $255.69. ResMed Inc. has a one year low of $199.92 and a one year high of $293.81. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44.

ResMed (NYSE:RMD - Get Free Report) last issued its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping analysts' consensus estimates of $2.47 by $0.08. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company's quarterly revenue was up 10.2% compared to the same quarter last year. During the same period last year, the company posted $2.08 earnings per share. As a group, equities analysts predict that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th were given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from ResMed's previous quarterly dividend of $0.53. The ex-dividend date of this dividend was Thursday, August 14th. ResMed's dividend payout ratio is 25.24%.

Insider Activity

In other news, Director John Hernandez sold 2,575 shares of the stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $287.10, for a total transaction of $739,282.50. Following the transaction, the director directly owned 4,045 shares in the company, valued at approximately $1,161,319.50. This trade represents a 38.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Michael J. Rider sold 100 shares of the stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $274.36, for a total transaction of $27,436.00. Following the transaction, the general counsel owned 11,327 shares in the company, valued at approximately $3,107,675.72. This represents a 0.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 18,743 shares of company stock worth $5,284,514. Corporate insiders own 0.71% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently commented on RMD. Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a report on Sunday, August 10th. CLSA upgraded shares of ResMed from a "hold" rating to an "outperform" rating in a report on Tuesday, September 2nd. Citigroup began coverage on shares of ResMed in a report on Thursday, September 18th. They set a "buy" rating and a $330.00 price target on the stock. KeyCorp upped their price target on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Finally, Piper Sandler upped their price target on shares of ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $294.20.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.

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