Delta Global Management LP Acquires Shares of 9,061 ResMed Inc. $RMD

Key Points

• Delta Global Management LP opened a new position in ResMed, buying 9,061 shares valued at about $2.03 million in the first quarter.
• ResMed’s latest quarterly results beat expectations, with EPS of $2.86 versus $2.79 expected and revenue of $1.43 billion, up 10.8% year over year.
• Analyst sentiment remains mixed but constructive, with a Moderate Buy consensus and an average price target of $246.25, while the stock recently traded around $195.43.

Delta Global Management LP acquired a new position in shares of ResMed Inc. (NYSE:RMD - Free Report) in the first quarter, according to its most recent disclosure with the SEC. The firm acquired 9,061 shares of the medical equipment provider's stock, valued at approximately $2,034,000.

Other hedge funds and other institutional investors also recently modified their holdings of the company. International Assets Investment Management LLC purchased a new stake in shares of ResMed during the fourth quarter worth approximately $25,000. ORG Partners LLC grew its position in ResMed by 181.6% in the 4th quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock valued at $26,000 after buying an additional 69 shares during the last quarter. Imprint Wealth LLC purchased a new position in ResMed in the 3rd quarter valued at $26,000. WFA of San Diego LLC acquired a new position in ResMed in the 2nd quarter valued at $26,000. Finally, Sunbelt Securities Inc. acquired a new position in ResMed in the 3rd quarter valued at $31,000. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Morgan Stanley restated an "equal weight" rating and set a $230.00 price objective (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Robert W. Baird set a $225.00 price target on shares of ResMed in a research note on Friday, May 1st. KeyCorp cut their price target on shares of ResMed from $290.00 to $266.00 and set an "overweight" rating for the company in a report on Monday, June 22nd. UBS Group restated a "buy" rating and issued a $300.00 price objective on shares of ResMed in a research report on Tuesday. Finally, Jefferies Financial Group lowered their price objective on ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $246.25.

ResMed Price Performance

ResMed stock opened at $195.43 on Friday. The company has a market cap of $28.35 billion, a P/E ratio of 18.85, a price-to-earnings-growth ratio of 1.22 and a beta of 0.78. ResMed Inc. has a one year low of $180.26 and a one year high of $293.81. The business has a fifty day moving average of $198.70 and a two-hundred day moving average of $224.98. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, topping analysts' consensus estimates of $2.79 by $0.07. The business had revenue of $1.43 billion for the quarter, compared to analysts' expectations of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The business's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period in the prior year, the company posted $2.37 EPS. As a group, analysts predict that ResMed Inc. will post 11.14 earnings per share for the current fiscal year.

ResMed Dividend Announcement

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

Insiders Place Their Bets

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

ResMed Company 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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