Certuity LLC Increases Stake in ResMed Inc. $RMD

Key Points

• Certuity LLC increased its stake in ResMed by 561.7% in Q4, now owning 6,736 shares valued at about $1.62 million, and institutional investors collectively hold roughly 54.98% of the company.
• ResMed beat Q4 estimates with EPS $2.81 vs $2.68 and revenue of $1.42 billion (up 11% YoY), and analysts maintain a consensus "Moderate Buy" with a $294.55 target versus the current ~ $222 share price.
• Company insiders have recently sold stock (CEO sold 4,991 shares at $273.78; a director sold 2,000 shares at $225), insiders now own about 0.65%, and ResMed pays a $0.60 quarterly dividend (≈1.1% yield).

Certuity LLC raised its position in ResMed Inc. (NYSE:RMD - Free Report) by 561.7% during the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 6,736 shares of the medical equipment provider's stock after purchasing an additional 5,718 shares during the period. Certuity LLC's holdings in ResMed were worth $1,623,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in RMD. SJS Investment Consulting Inc. lifted its holdings in ResMed by 1,433.3% in the 3rd quarter. SJS Investment Consulting Inc. now owns 92 shares of the medical equipment provider's stock valued at $25,000 after purchasing an additional 86 shares in the last quarter. ORG Partners LLC lifted its holdings in ResMed by 181.6% in the 4th quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock valued at $26,000 after purchasing an additional 69 shares in the last quarter. Imprint Wealth LLC purchased a new position in ResMed in the 3rd quarter valued at $26,000. WFA of San Diego LLC purchased a new position in ResMed in the 2nd quarter valued at $26,000. Finally, Sunbelt Securities Inc. purchased a new position in ResMed in the 3rd quarter valued at $31,000. Hedge funds and other institutional investors own 54.98% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Citigroup decreased their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a report on Thursday, April 9th. Robert W. Baird set a $281.00 price objective on ResMed in a report on Friday, January 30th. Wall Street Zen lowered ResMed from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Weiss Ratings lowered ResMed from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, March 19th. Finally, Royal Bank Of Canada lifted their price target on ResMed from $311.00 to $314.00 and gave the stock an "outperform" rating in a report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $294.55.

ResMed Stock Up 1.0%

Shares of RMD opened at $222.11 on Tuesday. The firm has a market cap of $32.36 billion, a P/E ratio of 21.97, a price-to-earnings-growth ratio of 1.45 and a beta of 0.93. ResMed Inc. has a 12-month low of $216.68 and a 12-month high of $293.81. The company's 50-day moving average price is $235.91 and its 200 day moving average price is $247.55. The company has a current ratio of 3.06, a quick ratio of 2.32 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Friday, January 30th. The medical equipment provider reported $2.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.13. The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.40 billion. ResMed had a net margin of 27.53% and a return on equity of 25.20%. ResMed's revenue was up 11.0% on a year-over-year basis. During the same period in the previous year, the firm earned $2.43 EPS. On average, sell-side analysts forecast that ResMed Inc. will post 11.05 earnings per share for the current year.

ResMed Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 19th. Investors of record on Thursday, February 12th were issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 1.1%. The ex-dividend date was Thursday, February 12th. ResMed's payout ratio is 23.74%.

Insider Activity

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of ResMed stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total value of $450,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $273.78, for a total value of $1,366,435.98. Following the completion of the transaction, the chief executive officer directly owned 466,223 shares of the company's stock, valued at approximately $127,642,532.94. This represents a 1.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 21,023 shares of company stock valued at $5,230,857. 0.65% of the stock is currently owned by corporate insiders.

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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