Hsbc Holdings PLC Has $79.32 Million Stake in ResMed Inc. $RMD

Key Points

• HSBC Holdings PLC increased its ResMed stake by 17.6% in the fourth quarter, adding 49,253 shares and bringing its position to 328,785 shares valued at about $79.3 million.
• Wall Street remains moderately bullish on ResMed, with analysts maintaining a consensus “Moderate Buy” rating and an average price target of $270.82, though several firms recently cut their targets.
• ResMed reported stronger-than-expected quarterly results, posting EPS of $2.86 versus estimates of $2.79 and revenue of $1.43 billion, while also paying a quarterly dividend of $0.60 per share.

Hsbc Holdings PLC grew its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 17.6% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 328,785 shares of the medical equipment provider's stock after acquiring an additional 49,253 shares during the quarter. Hsbc Holdings PLC owned 0.23% of ResMed worth $79,321,000 at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. Terra Nova Asset Management LLC raised its holdings in ResMed by 0.6% during the 3rd quarter. Terra Nova Asset Management LLC now owns 7,805 shares of the medical equipment provider's stock worth $2,136,000 after buying an additional 46 shares during the period. Occidental Asset Management LLC boosted its holdings in shares of ResMed by 3.0% in the fourth quarter. Occidental Asset Management LLC now owns 1,699 shares of the medical equipment provider's stock valued at $409,000 after buying an additional 49 shares during the period. Kera Capital Partners Inc. boosted its holdings in shares of ResMed by 6.6% in the fourth quarter. Kera Capital Partners Inc. now owns 841 shares of the medical equipment provider's stock valued at $217,000 after buying an additional 52 shares during the period. Andina Capital Management LLC increased its position in shares of ResMed by 2.9% during the fourth quarter. Andina Capital Management LLC now owns 1,988 shares of the medical equipment provider's stock worth $479,000 after acquiring an additional 56 shares in the last quarter. Finally, Wedmont Private Capital increased its position in shares of ResMed by 2.7% during the fourth quarter. Wedmont Private Capital now owns 2,183 shares of the medical equipment provider's stock worth $542,000 after acquiring an additional 57 shares in the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on RMD. Evercore set a $255.00 price objective on shares of ResMed and gave the company an "outperform" rating in a research report on Monday, April 13th. Wells Fargo & Company lowered their target price on ResMed from $270.00 to $227.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. KeyCorp dropped their price target on ResMed from $290.00 to $266.00 and set an "overweight" rating on the stock in a research note on Monday, June 22nd. The Goldman Sachs Group restated a "buy" rating on shares of ResMed in a report on Wednesday. Finally, Morgan Stanley reaffirmed 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. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $270.82.

Insiders Place Their Bets

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the business's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $193.96, for a total transaction of $968,054.36. Following the transaction, the chief executive officer owned 466,256 shares of the company's stock, valued at $90,435,013.76. The trade was a 1.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,973 shares of company stock valued at $3,130,754 in the last ninety days. 0.65% of the stock is owned by company insiders.

ResMed Stock Down 0.1%

Shares of RMD stock opened at $209.37 on Friday. 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 Inc. has a 1 year low of $180.26 and a 1 year high of $293.81. The firm's fifty day moving average price is $201.15 and its two-hundred day moving average price is $229.51. The firm has a market capitalization of $30.37 billion, a P/E ratio of 20.19, a PEG ratio of 1.23 and a beta of 0.78.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, topping analysts' consensus estimates of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same period in the prior year, the business posted $2.37 EPS. The company's quarterly revenue was up 10.8% on a year-over-year basis. On average, equities analysts predict that ResMed Inc. will post 11.13 EPS for the current fiscal year.

ResMed Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Thursday, May 14th. ResMed's dividend payout ratio (DPR) is currently 23.14%.

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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