Cumberland Partners Ltd Purchases 8,000 Shares of ResMed Inc. $RMD

Key Points

• Cumberland Partners Ltd increased its ResMed stake by 61.5% in the fourth quarter, buying 8,000 additional shares to bring its total to 21,000 shares worth about $5.06 million.
• ResMed reported better-than-expected quarterly results, with EPS of $2.86 versus estimates of $2.79 and revenue of $1.43 billion versus $1.42 billion expected. Revenue rose 10.8% year over year.
• The company also declared a quarterly dividend of $0.60 per share, payable June 18, while analysts currently rate the stock a “Moderate Buy” with a consensus price target of $286.18.

Cumberland Partners Ltd boosted its position in ResMed Inc. (NYSE:RMD - Free Report) by 61.5% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 21,000 shares of the medical equipment provider's stock after buying an additional 8,000 shares during the period. Cumberland Partners Ltd's holdings in ResMed were worth $5,058,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in ResMed by 1.6% in the 3rd quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock valued at $5,211,940,000 after buying an additional 293,515 shares in the last quarter. Swedbank AB lifted its stake in ResMed by 103.1% in the fourth quarter. Swedbank AB now owns 1,102,476 shares of the medical equipment provider's stock valued at $265,553,000 after purchasing an additional 559,765 shares during the last quarter. Nordea Investment Management AB lifted its stake in ResMed by 37.2% in the fourth quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock valued at $262,027,000 after purchasing an additional 294,124 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in ResMed by 6.2% in the third quarter. Dimensional Fund Advisors LP now owns 846,134 shares of the medical equipment provider's stock valued at $231,587,000 after purchasing an additional 49,540 shares during the last quarter. Finally, Caisse de depot et placement du Quebec lifted its stake in ResMed by 28.0% in the third quarter. Caisse de depot et placement du Quebec now owns 565,901 shares of the medical equipment provider's stock valued at $154,904,000 after purchasing an additional 123,781 shares during the last quarter. 54.98% of the stock is owned by institutional investors.

ResMed Trading Down 0.5%

NYSE:RMD opened at $208.04 on Friday. The company has a market cap of $30.31 billion, a P/E ratio of 20.06, a P/E/G ratio of 1.33 and a beta of 0.84. The stock's fifty day moving average price is $219.73 and its two-hundred day moving average price is $240.92. ResMed Inc. has a 1 year low of $198.61 and a 1 year high of $293.81. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33.

ResMed (NYSE:RMD - Get Free Report) last posted its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.79 by $0.07. The firm had revenue of $1.43 billion for 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% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.37 earnings per share. As a group, analysts expect that ResMed Inc. will post 11.13 EPS for the current year.

ResMed Dividend Announcement

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

Insider Buying and Selling at ResMed

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $207.82, for a total transaction of $1,037,229.62. Following the sale, the chief executive officer owned 466,223 shares in the company, valued at $96,890,463.86. This represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total value of $450,000.00. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 18,973 shares of company stock worth $4,386,031. Company insiders own 0.65% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently commented on RMD shares. Citigroup dropped their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a research note on Thursday, April 9th. Wells Fargo & Company dropped their price objective on ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Stifel Nicolaus upped their price objective on ResMed from $260.00 to $265.00 and gave the company a "hold" rating in a research note on Friday, January 30th. KeyCorp dropped their price objective on ResMed from $302.00 to $290.00 and set an "overweight" rating on the stock in a research note on Monday, April 27th. Finally, Royal Bank Of Canada increased their target price on ResMed from $314.00 to $321.00 and gave the stock an "outperform" rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $286.18.

About ResMed

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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