Jefferies Financial Group Inc. Cuts Stock Holdings in ResMed Inc. $RMD

Key Points

• Jefferies Financial Group reduced its ResMed stake by 34.4% in the fourth quarter, selling 7,516 shares and leaving it with 14,319 shares worth about $3.45 million.
• ResMed reported better-than-expected quarterly results, posting $2.86 EPS on $1.43 billion in revenue, with revenue up 10.8% year over year.
• The company declared a quarterly dividend of $0.60 per share, payable June 18, and analysts currently rate the stock a “Moderate Buy” with a consensus price target of $286.18.

Jefferies Financial Group Inc. decreased its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 34.4% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 14,319 shares of the medical equipment provider's stock after selling 7,516 shares during the quarter. Jefferies Financial Group Inc.'s holdings in ResMed were worth $3,449,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in the company. Terra Nova Asset Management LLC increased its stake 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 valued at $2,136,000 after purchasing an additional 46 shares in the last quarter. IMA Advisory Services Inc. increased its stake in ResMed by 52.7% during the 3rd quarter. IMA Advisory Services Inc. now owns 139 shares of the medical equipment provider's stock valued at $38,000 after purchasing an additional 48 shares in the last quarter. Occidental Asset Management LLC increased its stake in ResMed by 3.0% during the 4th quarter. Occidental Asset Management LLC now owns 1,699 shares of the medical equipment provider's stock valued at $409,000 after purchasing an additional 49 shares in the last quarter. Wedmont Private Capital increased its stake in ResMed by 2.7% during the 4th quarter. Wedmont Private Capital now owns 2,183 shares of the medical equipment provider's stock valued at $542,000 after purchasing an additional 57 shares in the last quarter. Finally, New Wave Wealth Advisors LLC increased its stake in ResMed by 3.0% during the 4th quarter. New Wave Wealth Advisors LLC now owns 1,956 shares of the medical equipment provider's stock valued at $471,000 after purchasing an additional 57 shares in the last quarter. Hedge funds and other institutional investors own 54.98% of the company's stock.

ResMed Stock Down 0.1%

RMD stock opened at $207.80 on Wednesday. The firm's fifty day simple moving average is $218.78 and its 200-day simple moving average is $240.33. The company has a market capitalization of $30.27 billion, a P/E ratio of 20.04, a price-to-earnings-growth ratio of 1.33 and a beta of 0.84. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33. ResMed Inc. has a 12 month low of $198.61 and a 12 month high of $293.81.

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. The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate 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 firm earned $2.37 EPS. As a group, equities research analysts forecast that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Dividend Announcement

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

Wall Street Analyst Weigh In

RMD has been the topic of a number of recent analyst reports. Royal Bank Of Canada upped their price target on shares of ResMed from $314.00 to $321.00 and gave the company an "outperform" rating in a research note on Friday, May 1st. Weiss Ratings downgraded ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday. Citigroup reduced their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating for the company in a research note on Thursday, April 9th. JPMorgan Chase & Co. started coverage on ResMed in a research note on Wednesday, April 15th. They issued an "overweight" rating for the company. Finally, Wall Street Zen cut ResMed from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. 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's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $286.18.

Insiders Place Their Bets

In related news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $207.82, for a total transaction of $1,037,229.62. Following the sale, the chief executive officer directly owned 466,223 shares of the company's stock, valued at approximately $96,890,463.86. This represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. The SEC filing for this sale provides additional information. Insiders have sold 18,973 shares of company stock worth $4,386,031 over the last three months. 0.65% of the stock is currently owned by insiders.

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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