CIBC Asset Management Inc Boosts Holdings in ResMed Inc. $RMD

Key Points

• CIBC Asset Management boosted its ResMed stake by 67.4% in the fourth quarter, ending with 34,588 shares valued at about $8.33 million. Several other major institutional investors also increased or initiated positions, and hedge funds/other institutions now own 54.98% of the stock.
• Analyst sentiment remains mostly positive, with ResMed holding a consensus rating of “Moderate Buy” and an average target price of $286.18. Recent calls included Evercore’s $255 target with an outperform rating and JPMorgan’s overweight initiation, though some firms trimmed targets.
• ResMed posted solid quarterly results, beating earnings and revenue estimates with EPS of $2.86 on revenue of $1.43 billion, while revenue rose 10.8% year over year. The company also announced a quarterly dividend of $0.60 per share, payable June 18, for an annualized yield of about 1.2%.

CIBC Asset Management Inc grew its holdings in shares of ResMed Inc. (NYSE:RMD - Free Report) by 67.4% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 34,588 shares of the medical equipment provider's stock after acquiring an additional 13,920 shares during the quarter. CIBC Asset Management Inc's holdings in ResMed were worth $8,331,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in RMD. Norges Bank bought a new position in shares of ResMed in the fourth quarter worth approximately $249,068,000. Swedbank AB grew its holdings in shares of ResMed by 103.1% in the fourth quarter. Swedbank AB now owns 1,102,476 shares of the medical equipment provider's stock worth $265,553,000 after purchasing an additional 559,765 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of ResMed by 7.4% in the fourth quarter. Bank of New York Mellon Corp now owns 4,890,654 shares of the medical equipment provider's stock worth $1,178,012,000 after purchasing an additional 337,738 shares during the last quarter. First Trust Advisors LP grew its holdings in shares of ResMed by 285.1% in the third quarter. First Trust Advisors LP now owns 445,198 shares of the medical equipment provider's stock worth $121,864,000 after purchasing an additional 329,588 shares during the last quarter. Finally, Marshall Wace LLP grew its holdings in shares of ResMed by 2,373.1% in the third quarter. Marshall Wace LLP now owns 310,987 shares of the medical equipment provider's stock worth $85,126,000 after purchasing an additional 298,412 shares during the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

RMD has been the topic of several recent analyst reports. Evercore set a $255.00 target price on shares of ResMed and gave the stock an "outperform" rating in a report on Monday, April 13th. JPMorgan Chase & Co. initiated coverage on shares of ResMed in a report on Wednesday, April 15th. They issued an "overweight" rating on the stock. KeyCorp cut their target price on shares of ResMed from $302.00 to $290.00 and set an "overweight" rating on the stock in a report on Monday, April 27th. Wells Fargo & Company cut their target price on shares of ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. Finally, Weiss Ratings cut shares of ResMed from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 22nd. 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.com, the company has an average rating of "Moderate Buy" and a consensus target price of $286.18.

Insider Buying and Selling

In related news, Director Peter C. Farrell sold 2,000 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $251.03, for a total value of $1,252,890.73. Following the completion of the transaction, the chief executive officer owned 466,223 shares of the company's stock, valued at $117,035,959.69. The trade was a 1.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 16,973 shares of company stock valued at $3,865,591. 0.65% of the stock is currently owned by corporate insiders.

ResMed Trading Up 0.8%

ResMed stock opened at $195.95 on Friday. The business has a 50-day simple moving average of $213.11 and a two-hundred day simple moving average of $237.21. The company has a market cap of $28.42 billion, a P/E ratio of 18.90, a P/E/G ratio of 1.24 and a beta of 0.80. ResMed Inc. has a 52-week low of $180.26 and a 52-week high of $293.81. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.79 by $0.07. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The business's quarterly revenue was up 10.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.37 EPS. Analysts predict that ResMed Inc. will post 11.13 EPS for the current year.

ResMed Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, May 14th will be paid a dividend of $0.60 per share. The ex-dividend date is Thursday, May 14th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. ResMed's payout ratio is 23.14%.

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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