Bank of New York Mellon Corp Takes $818.03 Million Position in ResMed Inc. $RMD

Key Points

• Bank of New York Mellon acquired 4.20 million ResMed shares worth approximately $818 million, representing about 2.89% of the company. Institutional investors and hedge funds collectively own 54.98% of ResMed.
• Analyst sentiment remains mixed, with seven Buy ratings and ten Hold ratings; the consensus rating is Hold with an average price target of $239.38.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 in EPS and $1.46 billion in revenue, while revenue increased 8.6% year over year. The company also raised its quarterly dividend to $0.66 per share.

Bank of New York Mellon Corp purchased a new position in shares of ResMed Inc. (NYSE:RMD - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 4,197,610 shares of the medical equipment provider's stock, valued at approximately $818,030,000. Bank of New York Mellon Corp owned about 2.89% of ResMed at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of RMD. Imprint Wealth LLC acquired a new position in shares of ResMed during the third quarter worth about $26,000. WFA of San Diego LLC purchased a new position in shares of ResMed during the 2nd quarter worth approximately $26,000. International Assets Investment Management LLC acquired a new stake in shares of ResMed in the 4th quarter valued at approximately $25,000. Sunbelt Securities Inc. acquired a new stake in shares of ResMed in the 3rd quarter valued at approximately $31,000. Finally, Reflection Asset Management purchased a new stake in shares of ResMed in the fourth quarter valued at approximately $34,000. 54.98% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. Mizuho dropped their price objective on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a report on Wednesday, July 15th. Rothschild & Co Redburn started coverage on shares of ResMed in a research note on Wednesday. They set a "neutral" rating and a $230.00 price target on the stock. Weiss Ratings upgraded shares of ResMed from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Morgan Stanley restated an "equal weight" rating and set a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Finally, Robert W. Baird set a $213.00 target price on shares of ResMed in a report on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $239.38.

Insider Activity at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the completion of the transaction, the chief executive officer directly owned 466,256 shares of the company's stock, valued at $95,904,196.64. This trade represents a 1.06% decrease in their position. The sale was disclosed in a document filed with the SEC, 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 8,000 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total value of $1,800,000.00. Following the completion of the sale, the director directly owned 52,773 shares in the company, valued at approximately $11,873,925. The trade was a 13.16% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,973 shares of company stock worth $4,885,436 over the last quarter. Company insiders own 0.65% of the company's stock.

ResMed Trading Down 0.8%

NYSE:RMD opened at $228.81 on Friday. The company has a market capitalization of $33.01 billion, a PE ratio of 21.94, a price-to-earnings-growth ratio of 1.45 and a beta of 0.76. The company has a quick ratio of 2.42, a current ratio of 3.10 and a debt-to-equity ratio of 0.06. ResMed Inc. has a 52-week low of $180.26 and a 52-week high of $293.81. The stock has a fifty day simple moving average of $206.48 and a 200-day simple moving average of $219.98.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. ResMed had a net margin of 26.94% and a return on equity of 25.58%. 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 company earned $2.55 EPS. The firm's revenue was up 8.6% on a year-over-year basis. On average, equities research analysts expect that ResMed Inc. will post 12.03 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be given a $0.66 dividend. This is a boost from ResMed's previous quarterly dividend of $0.60. This represents a $2.64 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Thursday, August 20th. ResMed's dividend payout ratio (DPR) is currently 23.01%.

ResMed Profile

ResMed NYSE: RMD is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed's product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.

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