Addenda Capital Inc. Acquires 1,113 Shares of ResMed Inc. $RMD

Key Points

• Addenda Capital Inc. increased its holdings in ResMed Inc. by 2.1%, acquiring an additional 1,113 shares, bringing their total to 54,715 shares valued at approximately $14.1 million.
• ResMed reported strong quarterly earnings of $2.55 per share, exceeding expectations, with revenue of $1.35 billion, marking a 10.2% year-over-year increase.
• The company also raised its quarterly dividend from $0.53 to $0.60 per share, reflecting a commitment to returning value to shareholders.

Addenda Capital Inc. increased its holdings in shares of ResMed Inc. (NYSE:RMD - Free Report) by 2.1% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 54,715 shares of the medical equipment provider's stock after buying an additional 1,113 shares during the period. Addenda Capital Inc.'s holdings in ResMed were worth $14,116,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of RMD. GAMMA Investing LLC raised its stake in shares of ResMed by 23,982.6% during the first quarter. GAMMA Investing LLC now owns 733,556 shares of the medical equipment provider's stock worth $164,207,000 after buying an additional 730,510 shares during the last quarter. OVERSEA CHINESE BANKING Corp Ltd increased its stake in ResMed by 1,168.5% in the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 590,895 shares of the medical equipment provider's stock valued at $132,272,000 after purchasing an additional 544,311 shares in the last quarter. Allianz Asset Management GmbH increased its stake in ResMed by 334.0% in the first quarter. Allianz Asset Management GmbH now owns 455,124 shares of the medical equipment provider's stock valued at $101,880,000 after purchasing an additional 350,245 shares in the last quarter. Swedbank AB increased its stake in ResMed by 445.1% in the first quarter. Swedbank AB now owns 397,319 shares of the medical equipment provider's stock valued at $88,940,000 after purchasing an additional 324,428 shares in the last quarter. Finally, Vanguard Group Inc. increased its stake in ResMed by 1.8% in the first quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider's stock valued at $4,139,815,000 after purchasing an additional 320,240 shares in the last quarter. 54.98% of the stock is owned by institutional investors.

ResMed Stock Performance

Shares of RMD stock opened at $270.54 on Friday. The stock has a market cap of $39.61 billion, a P/E ratio of 28.45, a P/E/G ratio of 1.82 and a beta of 0.85. The company has a fifty day moving average price of $277.76 and a two-hundred day moving average price of $251.87. 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 current ratio of 3.44 and a quick ratio of 2.53.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share for the quarter, beating the consensus estimate of $2.47 by $0.08. The company 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 revenue was up 10.2% on a year-over-year basis. During the same period in the prior year, the firm earned $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 firm also recently declared a quarterly dividend, which was paid on Thursday, September 18th. Investors of record on Thursday, August 14th were given a dividend of $0.60 per share. This is a positive change from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Thursday, August 14th. ResMed's payout ratio is 25.24%.

Insider Buying and Selling

In related news, CEO Michael J. Farrell sold 8,009 shares of the firm's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $279.48, for a total transaction of $2,238,355.32. Following the transaction, the chief executive officer directly owned 455,503 shares of the company's stock, valued at approximately $127,303,978.44. This trade represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Peter C. Farrell sold 945 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total transaction of $241,438.05. Following the completion of the transaction, the director directly owned 68,273 shares in the company, valued at approximately $17,443,068.77. This represents a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 19,588 shares of company stock valued at $5,289,241. 0.71% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

RMD has been the subject of several research analyst reports. UBS Group upgraded shares of ResMed to a "strong-buy" rating in a report on Tuesday, September 16th. 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. Citigroup initiated coverage on shares of ResMed in a report on Thursday, September 18th. They issued a "buy" rating and a $330.00 price target for the company. Wall Street Zen cut shares of ResMed from a "buy" rating to a "hold" rating in a report on Sunday, August 10th. Finally, William Blair upgraded shares of ResMed to a "strong-buy" rating in a report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price 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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