Birch Capital Management LLC Reduces Stock Holdings in ResMed Inc. $RMD

Key Points

• Birch Capital Management cut its stake in ResMed by 24.3% in Q4, selling 8,642 shares to hold 26,899 shares valued at $6.48 million (about 3.2% of the firm's assets and its 11th-largest holding).
• Several large institutions materially increased positions—First Trust (+285.1%), Marshall Wace (+2,373.1%), Nordea (+37.2%) and Vanguard (+1.6%)—leaving roughly 54.98% of ResMed stock owned by hedge funds and other institutional investors.
• ResMed reported a quarter where EPS beat estimates ($2.86 vs. $2.79) and revenue rose 10.8% year-over-year, and the company declared a quarterly dividend of $0.60 per share (annualized $2.40, ~1.1% yield) with an ex-dividend date of May 14.

Birch Capital Management LLC reduced its stake in shares of ResMed Inc. (NYSE:RMD - Free Report) by 24.3% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 26,899 shares of the medical equipment provider's stock after selling 8,642 shares during the quarter. ResMed accounts for approximately 3.2% of Birch Capital Management LLC's holdings, making the stock its 11th largest holding. Birch Capital Management LLC's holdings in ResMed were worth $6,479,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of RMD. First Trust Advisors LP raised its holdings in shares of ResMed by 285.1% during the 3rd quarter. First Trust Advisors LP now owns 445,198 shares of the medical equipment provider's stock valued at $121,864,000 after buying an additional 329,588 shares during the period. Marshall Wace LLP raised its holdings in shares of ResMed by 2,373.1% during the 3rd quarter. Marshall Wace LLP now owns 310,987 shares of the medical equipment provider's stock valued at $85,126,000 after buying an additional 298,412 shares during the period. Nordea Investment Management AB raised its holdings in shares of ResMed by 37.2% during the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock valued at $262,027,000 after buying an additional 294,124 shares during the period. Vanguard Group Inc. raised its holdings in shares of ResMed by 1.6% during the 3rd quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock valued at $5,211,940,000 after buying an additional 293,515 shares during the period. Finally, Giverny Capital Inc. purchased a new stake in shares of ResMed during the 3rd quarter valued at about $64,441,000. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Price Performance

Shares of NYSE RMD opened at $209.14 on Tuesday. ResMed Inc. has a fifty-two week low of $198.64 and a fifty-two week high of $293.81. The business has a 50 day moving average price of $233.35 and a two-hundred day moving average price of $246.34. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. The firm has a market cap of $30.47 billion, a PE ratio of 20.17, a price-to-earnings-growth ratio of 1.35 and a beta of 0.84.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.79 by $0.07. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The firm had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.42 billion. During the same quarter last year, the firm earned $2.37 EPS. ResMed's quarterly revenue was up 10.8% on a year-over-year basis. Sell-side analysts expect that ResMed Inc. will post 11.07 earnings per share for the current fiscal year.

ResMed Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, May 14th. ResMed's dividend payout ratio (DPR) is 23.14%.

Insider Buying and Selling

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $273.78, for a total transaction of $1,366,435.98. Following the transaction, the chief executive officer owned 466,223 shares of the company's stock, valued at $127,642,532.94. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total value of $450,000.00. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 21,023 shares of company stock worth $5,230,857. 0.65% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Citigroup dropped their target price on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a report on Thursday, April 9th. Wells Fargo & Company dropped their target price on ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a report on Friday. Evercore set a $255.00 target price on ResMed and gave the company an "outperform" rating in a report on Monday, April 13th. Robert W. Baird set a $225.00 price objective on ResMed in a research note on Friday. Finally, Stifel Nicolaus raised their price objective on ResMed from $260.00 to $265.00 and gave the company a "hold" rating in a research note on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $286.18.

ResMed Company 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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