Bank of America Corp DE Buys New Stake in ResMed Inc. $RMD

Key Points

• Bank of America acquired 775,424 ResMed shares worth approximately $151.1 million, giving it a 0.53% stake. Institutional investors and hedge funds collectively own 54.98% of the company.
• ResMed reported quarterly earnings of $2.95 per share, beating estimates by $0.06, while revenue rose 8.6% year over year to $1.46 billion.
• ResMed raised its quarterly dividend from $0.60 to $0.66 per share, equivalent to a $2.64 annualized dividend and a 1.2% yield. Analysts maintain a consensus “Hold” rating with an average price target of $241.69.

Bank of America Corp DE bought a new position in ResMed Inc. (NYSE:RMD - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 775,424 shares of the medical equipment provider's stock, valued at approximately $151,115,000. Bank of America Corp DE owned 0.53% of ResMed at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Bell Investment Advisors Inc bought a new stake in ResMed during the second quarter valued at about $26,000. Reflection Asset Management bought a new position in ResMed during the fourth quarter worth $34,000. Elyxium Wealth LLC bought a new position in ResMed during the fourth quarter worth $44,000. Trust Co. of Vermont acquired a new position in ResMed during the 2nd quarter valued at $39,000. Finally, MV Capital Management Inc. acquired a new position in ResMed during the 4th quarter valued at $52,000. Institutional investors and hedge funds own 54.98% of the company's stock.

Insider Activity

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the business's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $222.44, for a total value of $1,110,198.04. Following the transaction, the chief executive officer directly owned 466,256 shares in the company, valued at $103,713,984.64. The trade was a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 970 shares of the company's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total transaction of $227,688.10. Following the sale, the director directly owned 51,803 shares in the company, valued at $12,159,718.19. This represents a 1.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 23,943 shares of company stock worth $5,255,268. 0.65% of the stock is owned by insiders.

ResMed Price Performance

ResMed stock opened at $228.68 on Friday. The business has a 50 day simple moving average of $218.53 and a 200 day simple moving average of $215.93. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. The company has a market capitalization of $32.99 billion, a PE ratio of 21.93, a price-to-earnings-growth ratio of 1.44 and a beta of 0.77. ResMed Inc. has a one year low of $180.26 and a one year high of $284.87.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The firm had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.46 billion. During the same period in the prior year, the business posted $2.55 earnings per share. The business's revenue was up 8.6% compared to the same quarter last year. On average, sell-side analysts forecast that ResMed Inc. will post 12.02 EPS for the current fiscal year.

ResMed Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be issued a $0.66 dividend. This represents a $2.64 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, August 20th. This is a positive change from ResMed's previous quarterly dividend of $0.60. ResMed's payout ratio is currently 25.31%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Mizuho reduced their price target on shares of ResMed from $235.00 to $220.00 and set an "outperform" rating for the company in a report on Wednesday, July 15th. Weiss Ratings upgraded shares of ResMed from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Robert W. Baird set a $213.00 price objective on shares of ResMed in a research report on Friday, August 7th. Wells Fargo & Company reduced their target price on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a research note on Friday, August 7th. Finally, Jefferies Financial Group decreased their target price on ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a research report on Friday, July 10th. Seven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $241.69.

ResMed Company Profile

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.

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