Connor Clark & Lunn Investment Management Ltd. Increases Stake in ResMed Inc. (NYSE:RMD)

Key Points

• Connor Clark & Lunn Investment Management Ltd. increased its position in ResMed Inc. by 8.3%, now owning 67,106 shares valued at approximately $15 million.
• ResMed's recent earnings report showed an EPS of $2.55, surpassing estimates by $0.08, with a 10.2% year-over-year revenue growth to $1.35 billion.
• The company announced a quarterly dividend increase to $0.60 per share, reflecting a 0.8% dividend yield with a payout ratio of 22.29%.

Connor Clark & Lunn Investment Management Ltd. boosted its stake in ResMed Inc. (NYSE:RMD - Free Report) by 8.3% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 67,106 shares of the medical equipment provider's stock after acquiring an additional 5,166 shares during the quarter. Connor Clark & Lunn Investment Management Ltd.'s holdings in ResMed were worth $15,022,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. CVA Family Office LLC boosted its holdings in ResMed by 29.8% in the 1st 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. Central Pacific Bank Trust Division increased its position in ResMed by 9.7% during the 1st quarter. Central Pacific Bank Trust Division now owns 565 shares of the medical equipment provider's stock worth $126,000 after purchasing an additional 50 shares in the last quarter. Terra Nova Asset Management LLC increased its position in ResMed by 0.7% during the 1st quarter. Terra Nova Asset Management LLC now owns 7,950 shares of the medical equipment provider's stock worth $1,780,000 after purchasing an additional 52 shares in the last quarter. Portside Wealth Group LLC increased its position in ResMed by 3.8% during the 1st quarter. Portside Wealth Group LLC now owns 1,457 shares of the medical equipment provider's stock worth $326,000 after purchasing an additional 54 shares in the last quarter. Finally, Angeles Wealth Management LLC increased its position in ResMed by 5.3% in the 1st quarter. Angeles Wealth Management LLC now owns 1,182 shares of the medical equipment provider's stock valued at $265,000 after acquiring an additional 59 shares during the period. 54.98% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. Stifel Nicolaus upped their price target on shares of ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a research report on Friday, August 1st. UBS Group increased their target price on shares of ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Piper Sandler raised their price objective on shares of ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. JPMorgan Chase & Co. raised their price objective on shares of ResMed from $286.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, April 24th. Finally, Royal Bank Of Canada raised their price target on shares of ResMed from $294.00 to $300.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, ResMed currently has an average rating of "Moderate Buy" and a consensus target price of $274.83.

ResMed Trading Down 1.3%

NYSE:RMD traded down $3.72 during midday trading on Thursday, reaching $284.56. 894,694 shares of the stock traded hands, compared to its average volume of 1,001,240. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. ResMed Inc. has a 12 month low of $199.92 and a 12 month high of $293.08. The stock has a market capitalization of $41.66 billion, a P/E ratio of 29.92, a PEG ratio of 1.90 and a beta of 0.77. The company has a fifty day moving average of $262.82 and a 200 day moving average of $242.61.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping 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 business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same period in the prior year, the business earned $2.08 EPS. The company's revenue for the quarter was up 10.2% on a year-over-year basis. On average, research analysts predict that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be given a $0.60 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.8%. This is a boost from ResMed's previous quarterly dividend of $0.53. ResMed's payout ratio is currently 25.24%.

Insider Transactions at ResMed

In other news, Director Witte Jan De sold 2,000 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $243.47, for a total value of $486,940.00. Following the sale, the director directly owned 5,806 shares of the company's stock, valued at $1,413,586.82. This represents a 25.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Peter C. Farrell sold 945 shares of the company's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $255.49, for a total transaction of $241,438.05. Following the completion of the sale, the director directly owned 68,273 shares in the company, valued at $17,443,068.77. This represents a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 27,063 shares of company stock valued at $7,058,835 in the last three months. 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.