Cumberland Partners Ltd Sells 11,500 Shares of ResMed Inc. $RMD

Key Points

• Cumberland Partners Ltd cut its ResMed stake by 54.8% in the first quarter, selling 11,500 shares and ending with 9,500 shares valued at about $2.13 million.
• ResMed reported better-than-expected quarterly results, with EPS of $2.86 versus estimates of $2.79 and revenue of $1.43 billion, up 10.8% year over year.
• The company also paid a quarterly dividend of $0.60 per share, while analysts currently rate the stock a Moderate Buy with an average price target of $246.25.

Cumberland Partners Ltd lowered its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 54.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 9,500 shares of the medical equipment provider's stock after selling 11,500 shares during the quarter. Cumberland Partners Ltd's holdings in ResMed were worth $2,133,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of RMD. Imprint Wealth LLC purchased a new position in ResMed during the 3rd quarter valued at about $26,000. WFA of San Diego LLC purchased a new stake in ResMed in the second quarter worth about $26,000. International Assets Investment Management LLC purchased a new stake in ResMed in the fourth quarter worth about $25,000. ORG Partners LLC increased its stake in shares of ResMed by 181.6% during the fourth quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock valued at $26,000 after purchasing an additional 69 shares in the last quarter. Finally, Sunbelt Securities Inc. bought a new position in shares of ResMed during the third quarter valued at approximately $31,000. 54.98% of the stock is owned by hedge funds and other institutional investors.

ResMed Price Performance

Shares of NYSE RMD opened at $195.43 on Friday. The company has a 50 day moving average of $198.70 and a 200 day moving average of $224.98. 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 Inc. has a twelve month low of $180.26 and a twelve month high of $293.81. The firm has a market cap of $28.35 billion, a P/E ratio of 18.85, a PEG ratio of 1.20 and a beta of 0.78.

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

ResMed Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th were issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Thursday, May 14th. ResMed's dividend payout ratio (DPR) is presently 23.14%.

Insider Activity

In other news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total value of $1,090,783.05. Following the completion of the sale, the chief executive officer directly owned 466,223 shares in the company, valued at $101,893,036.65. The trade was a 1.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 14,973 shares of company stock worth $3,096,067. Company insiders own 0.65% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Weiss Ratings cut ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, May 22nd. Citigroup reaffirmed a "neutral" rating and set a $235.00 price objective (down from $270.00) on shares of ResMed in a research report on Sunday, July 12th. JPMorgan Chase & Co. initiated coverage on ResMed in a research note on Wednesday, April 15th. They set an "overweight" rating for the company. Robert W. Baird set a $225.00 target price on ResMed in a report on Friday, May 1st. Finally, Jefferies Financial Group cut their target price on ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $246.25.

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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