Hsbc Holdings PLC Has $70.31 Million Position in ResMed Inc. $RMD

Key Points

• HSBC Holdings PLC trimmed its stake in ResMed by 4.6% in the first quarter, leaving it with 313,511 shares valued at about $70.3 million. Institutional investors still hold a majority of the company’s stock, at 54.98%.
• ResMed posted solid quarterly results, with earnings of $2.86 per share beating estimates and revenue of $1.43 billion slightly above expectations. Revenue rose 10.8% year over year, and analysts expect full-year EPS of 11.13.
• The company continues to return cash to shareholders through a quarterly dividend of $0.60 per share, or $2.40 annually, for a 1.2% yield. Meanwhile, insider selling and several analyst target cuts have kept sentiment more cautious, though consensus remains a “Moderate Buy.”

Hsbc Holdings PLC lowered its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 4.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 313,511 shares of the medical equipment provider's stock after selling 15,274 shares during the quarter. Hsbc Holdings PLC owned 0.22% of ResMed worth $70,307,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in RMD. Nordea Investment Management AB grew its position 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 acquiring an additional 294,124 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of ResMed by 13.7% during the fourth quarter. Goldman Sachs Group Inc. now owns 979,087 shares of the medical equipment provider's stock valued at $235,833,000 after acquiring an additional 118,296 shares during the period. Fideuram Asset Management Ireland dac bought a new position in shares of ResMed during the fourth quarter valued at $4,712,000. Regatta Capital Group LLC acquired a new stake in shares of ResMed in the 4th quarter valued at $2,508,000. Finally, Legal & General Group Plc boosted its stake in shares of ResMed by 3.6% in the 4th quarter. Legal & General Group Plc now owns 992,527 shares of the medical equipment provider's stock valued at $239,070,000 after purchasing an additional 34,317 shares in the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

ResMed Price Performance

Shares of RMD stock opened at $198.86 on Monday. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $293.81. The firm's 50 day moving average is $199.40 and its 200-day moving average is $226.52. The firm has a market capitalization of $28.85 billion, a price-to-earnings ratio of 19.18, a PEG ratio of 1.19 and a beta of 0.78. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.79 by $0.07. The business had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. ResMed's revenue for the quarter was up 10.8% compared to the same quarter last year. During the same quarter last year, the business posted $2.37 earnings per share. Sell-side analysts forecast that ResMed Inc. will post 11.13 EPS for the current fiscal year.

ResMed Announces Dividend

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

Insider Activity

In related news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total value of $1,090,783.05. Following the transaction, the chief executive officer owned 466,223 shares in the company, valued at $101,893,036.65. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,973 shares of company stock worth $3,096,067 over the last quarter. Corporate insiders own 0.65% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on RMD. Morgan Stanley reiterated an "equal weight" rating and set a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Robert W. Baird set a $225.00 price objective on shares of ResMed in a research note on Friday, May 1st. Royal Bank Of Canada cut shares of ResMed from an "outperform" rating to a "sector perform" rating and set a $234.00 price objective on the stock. in a research note on Thursday. Mizuho cut their target price on shares of ResMed from $235.00 to $220.00 and set an "outperform" rating for the company in a research note on Wednesday. Finally, Wells Fargo & Company reduced their target price on ResMed from $227.00 to $225.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $250.00.

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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