Ameriprise Financial Inc. Acquires 43,264 Shares of ResMed Inc. $RMD

Key Points

• Ameriprise Financial Inc. increased its stake in ResMed Inc. by 14.2%, acquiring an additional 43,264 shares, bringing its total ownership to approximately $78 million.
• ResMed recently reported quarterly earnings of $2.55 per share, surpassing expectations and showcasing a revenue increase of 10.2% compared to the previous year.
• The company is set to pay a quarterly dividend of $0.60 on September 18, an increase from the previous $0.53, with a current yield of 0.8%.

Ameriprise Financial Inc. increased its holdings in shares of ResMed Inc. (NYSE:RMD - Free Report) by 14.2% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 348,501 shares of the medical equipment provider's stock after acquiring an additional 43,264 shares during the quarter. Ameriprise Financial Inc. owned approximately 0.24% of ResMed worth $78,014,000 as of its most recent SEC filing.

A number of other hedge funds have also bought and sold shares of the business. E Fund Management Co. Ltd. lifted its holdings in ResMed by 2.8% during the first quarter. E Fund Management Co. Ltd. now owns 1,719 shares of the medical equipment provider's stock worth $385,000 after acquiring an additional 47 shares during the period. CVA Family Office LLC lifted its holdings in ResMed by 29.8% during the first quarter. CVA Family Office LLC now owns 209 shares of the medical equipment provider's stock worth $47,000 after acquiring an additional 48 shares during the period. Central Pacific Bank Trust Division lifted its holdings in ResMed by 9.7% during the first quarter. Central Pacific Bank Trust Division now owns 565 shares of the medical equipment provider's stock worth $126,000 after acquiring an additional 50 shares during the period. Terra Nova Asset Management LLC lifted its holdings in ResMed by 0.7% during the first quarter. Terra Nova Asset Management LLC now owns 7,950 shares of the medical equipment provider's stock worth $1,780,000 after acquiring an additional 52 shares during the period. Finally, Portside Wealth Group LLC lifted its holdings in ResMed by 3.8% during the first quarter. Portside Wealth Group LLC now owns 1,457 shares of the medical equipment provider's stock worth $326,000 after acquiring an additional 54 shares during the period. 54.98% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Stifel Nicolaus lifted their price target on ResMed from $240.00 to $270.00 and gave the stock a "hold" rating in a report on Friday, August 1st. William Blair upgraded ResMed to a "strong-buy" rating in a research note on Friday, August 1st. Wall Street Zen lowered ResMed from a "buy" rating to a "hold" rating in a research note on Sunday, August 10th. Morgan Stanley set a $286.00 target price on ResMed and gave the company an "overweight" rating in a research note on Tuesday, May 20th. Finally, Royal Bank Of Canada boosted their target price on ResMed from $294.00 to $300.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $274.83.

Insider Activity

In related news, CEO Michael J. Farrell sold 8,009 shares of ResMed stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total transaction of $2,238,355.32. Following the completion of the sale, the chief executive officer 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 filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John Hernandez sold 2,575 shares of ResMed stock in a transaction on Monday, August 18th. The shares were sold at an average price of $287.10, for a total value of $739,282.50. Following the sale, the director directly owned 4,045 shares of the company's stock, valued at $1,161,319.50. This represents a 38.90% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 27,638 shares of company stock worth $7,311,177. 0.71% of the stock is owned by corporate insiders.

ResMed Stock Performance

Shares of NYSE RMD traded down $6.60 during mid-day trading on Thursday, hitting $275.36. The company had a trading volume of 1,298,974 shares, compared to its average volume of 1,046,229. The company has a market capitalization of $40.32 billion, a price-to-earnings ratio of 28.95, a P/E/G ratio of 1.88 and a beta of 0.77. ResMed Inc. has a 1 year low of $199.92 and a 1 year high of $293.81. The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. The stock's 50-day moving average price is $270.40 and its 200-day moving average price is $245.72.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings results 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 during the quarter, compared to analysts' expectations of $1.33 billion. ResMed had a return on equity of 25.62% and a net margin of 27.22%.The firm's quarterly revenue was up 10.2% compared to the same quarter last year. During the same period in the previous year, the business earned $2.08 earnings per share. On average, sell-side analysts forecast that ResMed Inc. will post 9.47 earnings per share for the current year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be given a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 0.9%. This is a boost from ResMed's previous quarterly dividend of $0.53. The ex-dividend date is Thursday, August 14th. ResMed's dividend payout ratio (DPR) is presently 25.24%.

ResMed Profile

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.