Brasada Capital Management LP Takes $3.21 Million Position in ResMed Inc. $RMD

Key Points

• Brasada Capital Management LP purchased 15,711 shares of ResMed Inc., valued at approximately $3.2 million, during the first quarter, signaling institutional interest in the medical equipment provider.
• ResMed increased its quarterly dividend from $0.53 to $0.60 per share, offering investors a yield of 0.9%, with the dividend payout date set for September 18th.
• Despite a recent 0.2% decline in stock price, ResMed reported a quarterly earnings per share of $2.55, exceeding analysts' expectations and showcasing a 10.2% increase in revenue compared to the prior year.

Brasada Capital Management LP bought a new stake in ResMed Inc. (NYSE:RMD - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 15,711 shares of the medical equipment provider's stock, valued at approximately $3,214,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Global X Japan Co. Ltd. raised its stake in ResMed by 121.4% in the first quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock worth $28,000 after buying an additional 68 shares in the last quarter. Colonial Trust Co SC raised its stake in ResMed by 6,250.0% in the fourth quarter. Colonial Trust Co SC now owns 127 shares of the medical equipment provider's stock worth $29,000 after buying an additional 125 shares in the last quarter. Golden State Wealth Management LLC boosted its holdings in shares of ResMed by 384.8% during the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock valued at $36,000 after buying an additional 127 shares in the last quarter. Itau Unibanco Holding S.A. grew its holdings in ResMed by 1,000.0% in the fourth quarter. Itau Unibanco Holding S.A. now owns 165 shares of the medical equipment provider's stock worth $38,000 after purchasing an additional 150 shares during the period. Finally, Zions Bancorporation National Association UT purchased a new stake in ResMed in the first quarter worth about $45,000. 54.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have recently commented on RMD shares. Wall Street Zen cut shares of ResMed from a "buy" rating to a "hold" rating in a report on Sunday, August 10th. Stifel Nicolaus lifted their price target on shares of ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a report on Friday, August 1st. Piper Sandler lifted their price objective on shares of ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. UBS Group raised their target price on shares of ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a report on Friday, August 1st. Finally, CLSA upgraded ResMed from a "hold" rating to an "outperform" rating in a research report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, ResMed presently has a consensus rating of "Moderate Buy" and a consensus target price of $274.83.

ResMed Price Performance

Shares of ResMed stock traded down $2.18 on Wednesday, hitting $268.81. 1,804,367 shares of the company were exchanged, compared to its average volume of 1,004,482. The stock has a market capitalization of $39.36 billion, a price-to-earnings ratio of 28.27, a price-to-earnings-growth ratio of 1.83 and a beta of 0.85. The company has a quick ratio of 2.53, a current ratio of 3.44 and a debt-to-equity ratio of 0.11. The company has a 50-day moving average price of $271.53 and a 200 day moving average price of $246.55. ResMed Inc. has a 1-year low of $199.92 and a 1-year high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating the consensus estimate of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.33 billion. During the same quarter last year, the company posted $2.08 EPS. The firm's revenue was up 10.2% compared to the same quarter last year. As a group, sell-side analysts predict that ResMed Inc. will post 9.47 earnings per share for the current fiscal 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 paid a dividend of $0.60 per share. This is a boost from ResMed's previous quarterly dividend of $0.53. The ex-dividend date of this dividend is Thursday, August 14th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.9%. ResMed's dividend payout ratio is currently 25.24%.

Insider Transactions at ResMed

In other ResMed news, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer owned 455,503 shares of the company's stock, valued at $127,303,978.44. This trade represents a 1.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director John Hernandez sold 2,575 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $287.10, for a total value of $739,282.50. Following the completion of the transaction, the director directly owned 4,045 shares of the company's stock, valued at $1,161,319.50. This trade represents a 38.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 27,597 shares of company stock valued at $7,301,182 in the last ninety days. 0.71% of the stock is currently owned by company insiders.

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.