Cibc World Market Inc. Acquires New Holdings in ResMed Inc. $RMD

Key Points

• Cibc World Market Inc. acquired 30,963 ResMed shares in the second quarter, valued at approximately $6.0 million. Institutional investors collectively own 54.98% of the company.
• ResMed reported quarterly earnings of $2.95 per share, exceeding analyst expectations, while revenue rose 8.6% year over year to $1.46 billion.
• The company increased its quarterly dividend from $0.60 to $0.66 per share. Analysts maintain a consensus “Hold” rating, with an average price target of $239.38.

Cibc World Market Inc. bought a new position in ResMed Inc. (NYSE:RMD - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 30,963 shares of the medical equipment provider's stock, valued at approximately $6,034,000.

Several other large investors have also recently bought and sold shares of RMD. International Assets Investment Management LLC purchased a new stake in shares of ResMed in the fourth quarter worth $25,000. Bell Investment Advisors Inc bought a new stake in ResMed during the second quarter valued at $26,000. Imprint Wealth LLC purchased a new position in ResMed during the third quarter worth about $26,000. WFA of San Diego LLC purchased a new position in ResMed during the second quarter worth about $26,000. Finally, Sunbelt Securities Inc. bought a new position in ResMed in the 3rd quarter worth about $31,000. 54.98% of the stock is owned by institutional investors.

ResMed Price Performance

RMD opened at $236.36 on Wednesday. The stock has a 50-day moving average price of $208.86 and a 200-day moving average price of $219.51. ResMed Inc. has a 12-month low of $180.26 and a 12-month high of $286.91. The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $34.09 billion, a P/E ratio of 22.66, a PEG ratio of 1.46 and a beta of 0.76.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. The company had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.ResMed's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period last year, the firm posted $2.55 EPS. Equities analysts predict that ResMed Inc. will post 12.03 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, August 20th will be given a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, August 20th. This is a boost from ResMed's previous quarterly dividend of $0.60. ResMed's dividend payout ratio is 25.31%.

Insiders Place Their Bets

In other ResMed news, Director Peter C. Farrell sold 8,000 shares of the business's stock in a transaction 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 of the company's stock, valued at $11,873,925. The trade was a 13.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction dated 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 sale, the chief executive officer owned 466,256 shares of the company's stock, valued at approximately $95,904,196.64. The trade was a 1.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 22,973 shares of company stock worth $4,885,436. 0.65% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on RMD. Rothschild & Co Redburn initiated coverage on ResMed in a report on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 price target on the stock. Wells Fargo & Company cut their price objective on ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. Morgan Stanley restated an "equal weight" rating and issued a $230.00 price objective (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Mizuho lowered their target price on shares of ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 15th. Finally, KeyCorp cut their price target on shares of ResMed from $260.00 to $255.00 and set an "overweight" rating for the company in a research note 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. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $239.38.

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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