Hendershot Investments Inc. Increases Holdings in ResMed Inc. $RMD

Key Points

• Hendershot Investments increased its stake in ResMed by 14.7% in Q4 to 55,094 shares (worth $13.27 million), making RMD about 1.7% of its portfolio and its 19th largest holding.
• ResMed beat quarterly estimates with EPS of $2.81 versus $2.68 and revenue of $1.42 billion (+11% YoY); analysts have a consensus "Moderate Buy" rating with an average target of $295.17.
• Insiders have been net sellers recently — CEO Michael J. Farrell sold 4,991 shares and insiders sold 21,023 shares (about $5.23M) over the last 90 days, with insiders owning only 0.65% of the stock.

Hendershot Investments Inc. grew its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 14.7% during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 55,094 shares of the medical equipment provider's stock after acquiring an additional 7,057 shares during the period. ResMed comprises about 1.7% of Hendershot Investments Inc.'s investment portfolio, making the stock its 19th biggest position. Hendershot Investments Inc.'s holdings in ResMed were worth $13,270,000 at the end of the most recent quarter.

Several other large investors have also made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of ResMed by 1.6% in the third quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock valued at $5,211,940,000 after acquiring an additional 293,515 shares in the last quarter. Nordea Investment Management AB boosted its position in shares of ResMed by 37.2% during the fourth quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock worth $262,027,000 after acquiring an additional 294,124 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of ResMed by 6.2% during the third quarter. Dimensional Fund Advisors LP now owns 846,134 shares of the medical equipment provider's stock worth $231,587,000 after acquiring an additional 49,540 shares during the last quarter. Caisse de depot et placement du Quebec boosted its position in shares of ResMed by 28.0% during the third quarter. Caisse de depot et placement du Quebec now owns 565,901 shares of the medical equipment provider's stock worth $154,904,000 after acquiring an additional 123,781 shares during the last quarter. Finally, Swedbank AB boosted its position in shares of ResMed by 25.4% during the third quarter. Swedbank AB now owns 542,711 shares of the medical equipment provider's stock worth $148,556,000 after acquiring an additional 109,760 shares during the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on RMD. KeyCorp restated an "overweight" rating and set a $302.00 target price on shares of ResMed in a research report on Friday, January 30th. Weiss Ratings lowered shares of ResMed from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, March 19th. Robert W. Baird set a $281.00 price target on shares of ResMed in a research note on Friday, January 30th. Evercore set a $255.00 price target on shares of ResMed and gave the company an "outperform" rating in a research note on Monday. Finally, Wells Fargo & Company upped their price target on shares of ResMed from $265.00 to $270.00 and gave the company an "equal weight" rating in a research note on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, ResMed currently has a consensus rating of "Moderate Buy" and an average target price of $295.17.

Insider Activity

In related news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $273.78, for a total value of $1,366,435.98. Following the transaction, the chief executive officer owned 466,223 shares of the company's stock, valued at $127,642,532.94. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Peter C. Farrell sold 2,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 21,023 shares of company stock worth $5,230,857 in the last ninety days. 0.65% of the stock is currently owned by insiders.

ResMed Trading Down 1.8%

Shares of RMD opened at $224.76 on Friday. ResMed Inc. has a twelve month low of $202.00 and a twelve month high of $293.81. The company has a market cap of $32.74 billion, a P/E ratio of 22.23, a P/E/G ratio of 1.51 and a beta of 0.93. The company has a current ratio of 3.06, a quick ratio of 2.32 and a debt-to-equity ratio of 0.06. The company's fifty day simple moving average is $241.17 and its 200-day simple moving average is $250.63.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Friday, January 30th. The medical equipment provider reported $2.81 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.13. ResMed had a net margin of 27.53% and a return on equity of 25.20%. The business had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter in the prior year, the firm posted $2.43 earnings per share. The business's revenue for the quarter was up 11.0% on a year-over-year basis. As a group, analysts expect that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 19th. Investors of record on Thursday, February 12th were paid a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Thursday, February 12th. ResMed's dividend payout ratio (DPR) is currently 23.74%.

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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