Confluence Investment Management LLC Reduces Stake in ResMed Inc. $RMD

Key Points

• Confluence Investment Management LLC has reduced its stake in ResMed Inc. by 3.0%, now owning approximately $29.69 million worth of shares, following the sale of 3,532 shares in the second quarter.
• ResMed recently increased its quarterly dividend from $0.53 to $0.60 per share, with a dividend yield of 0.9%, reflecting its commitment to returning value to shareholders.
• ResMed's stock is currently rated a "Moderate Buy"** by analysts, with an average price target of $278.36, indicating optimistic performance expectations in the future.

Confluence Investment Management LLC cut its stake in ResMed Inc. (NYSE:RMD - Free Report) by 3.0% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 115,063 shares of the medical equipment provider's stock after selling 3,532 shares during the quarter. Confluence Investment Management LLC owned 0.08% of ResMed worth $29,686,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently modified their holdings of the company. Global X Japan Co. Ltd. grew its holdings in ResMed by 121.4% during the first quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock valued at $28,000 after purchasing an additional 68 shares during the period. Golden State Wealth Management LLC grew its holdings in ResMed by 384.8% during the first quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock valued at $36,000 after purchasing an additional 127 shares during the period. Zions Bancorporation National Association UT bought a new position in ResMed during the first quarter valued at $45,000. Groupe la Francaise bought a new position in ResMed during the first quarter valued at $45,000. Finally, CVA Family Office LLC grew its holdings in ResMed by 29.8% during the first quarter. CVA Family Office LLC now owns 209 shares of the medical equipment provider's stock valued at $47,000 after purchasing an additional 48 shares during the period. 54.98% of the stock is owned by institutional investors.

Insider Activity at ResMed

In related news, Director John Hernandez sold 2,575 shares of the firm's stock in a transaction 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 transaction, the director directly owned 4,045 shares of the company's stock, valued at approximately $1,161,319.50. This trade represents a 38.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael J. Farrell sold 8,009 shares of the firm's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total value of $2,238,355.32. Following the completion of the transaction, the chief executive officer directly owned 455,503 shares in the company, valued at approximately $127,303,978.44. This represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 19,588 shares of company stock valued at $5,289,241 in the last 90 days. Corporate insiders own 0.71% of the company's stock.

ResMed Trading Up 0.6%

RMD stock traded up $1.59 during midday trading on Thursday, hitting $273.30. The company had a trading volume of 194,642 shares, compared to its average volume of 994,720. ResMed Inc. has a 52 week low of $199.92 and a 52 week high of $293.81. The stock has a market cap of $40.01 billion, a price-to-earnings ratio of 28.72, a PEG ratio of 1.82 and a beta of 0.85. The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. The stock's 50 day moving average price is $275.30 and its 200 day moving average price is $249.57.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.08. ResMed had a return on equity of 25.62% and a net margin of 27.22%.The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter in the prior year, the company earned $2.08 EPS. The business's revenue was up 10.2% compared to the same quarter last year. As a group, equities research analysts expect that ResMed Inc. will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, August 14th will be given 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 yield of 0.9%. ResMed's dividend payout ratio is 25.24%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Royal Bank Of Canada raised their price target on ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. William Blair raised ResMed to a "strong-buy" rating in a report on Friday, August 1st. UBS Group lifted their price objective on ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Mizuho lifted their price objective on ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Finally, Wall Street Zen lowered ResMed from a "buy" rating to a "hold" rating in a research note on Sunday, August 10th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $292.00.

About ResMed

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.