L. Roy Papp & Associates LLP Grows Stake in ResMed Inc. $RMD

Key Points

• L. Roy Papp & Associates LLP increased its stake in ResMed Inc. by 41.7% during the second quarter, bringing its total holdings to 10,836 shares worth $2,796,000.
• ResMed reported a quarterly EPS of $2.55, exceeding estimates, with a revenue increase of 10.2% year-over-year to $1.35 billion.
• The company recently declared an increased quarterly dividend of $0.60, up from $0.53, representing an annual yield of 0.9%.

L. Roy Papp & Associates LLP grew its position in ResMed Inc. (NYSE:RMD - Free Report) by 41.7% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 10,836 shares of the medical equipment provider's stock after purchasing an additional 3,191 shares during the quarter. L. Roy Papp & Associates LLP's holdings in ResMed were worth $2,796,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of RMD. Pallas Capital Advisors LLC grew its holdings in ResMed by 11.9% in the first quarter. Pallas Capital Advisors LLC now owns 3,098 shares of the medical equipment provider's stock worth $693,000 after purchasing an additional 330 shares during the last quarter. Yousif Capital Management LLC grew its holdings in ResMed by 0.5% in the first quarter. Yousif Capital Management LLC now owns 22,482 shares of the medical equipment provider's stock worth $5,033,000 after purchasing an additional 101 shares during the last quarter. GAMMA Investing LLC grew its holdings in ResMed by 7.6% in the first quarter. GAMMA Investing LLC now owns 3,277 shares of the medical equipment provider's stock worth $734,000 after purchasing an additional 231 shares during the last quarter. CX Institutional grew its holdings in ResMed by 6.8% in the first quarter. CX Institutional now owns 1,530 shares of the medical equipment provider's stock worth $342,000 after purchasing an additional 97 shares during the last quarter. Finally, Simon Quick Advisors LLC grew its holdings in ResMed by 18.3% in the first quarter. Simon Quick Advisors LLC now owns 1,951 shares of the medical equipment provider's stock worth $437,000 after purchasing an additional 302 shares during the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

ResMed Price Performance

NYSE:RMD opened at $277.87 on Friday. ResMed Inc. has a one year low of $199.92 and a one year high of $293.81. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. The firm has a market cap of $40.55 billion, a price-to-earnings ratio of 29.22, a PEG ratio of 1.90 and a beta of 0.83. The firm's fifty day moving average is $278.65 and its two-hundred day moving average is $255.11.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating the consensus estimate of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same period in the prior year, the company earned $2.08 earnings per share. The firm's revenue was up 10.2% on a year-over-year basis. Research analysts expect that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th were issued a $0.60 dividend. The ex-dividend date of this dividend was Thursday, August 14th. This is a positive change from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a yield of 0.9%. ResMed's dividend payout ratio is currently 25.24%.

Insider Buying and Selling at ResMed

In other ResMed news, CEO Michael J. Farrell sold 8,009 shares of the company's stock in a transaction on Tuesday, October 7th. The shares were sold at an average price of $282.85, for a total value of $2,265,345.65. Following the sale, the chief executive officer directly owned 467,792 shares of the company's stock, valued at approximately $132,314,967.20. This represents a 1.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Michael J. Rider sold 100 shares of the company's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $274.36, for a total transaction of $27,436.00. Following the completion of the sale, the general counsel directly owned 11,327 shares in the company, valued at approximately $3,107,675.72. The trade was a 0.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 18,743 shares of company stock valued at $5,284,514. 0.71% of the stock is owned by insiders.

Wall Street Analyst Weigh In

RMD has been the topic of several analyst reports. Mizuho lifted their price target on shares of ResMed from $270.00 to $290.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Piper Sandler upped their target price on ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Stifel Nicolaus upped their target price on ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a research report on Friday, August 1st. Wall Street Zen downgraded ResMed from a "buy" rating to a "hold" rating in a research report on Sunday, August 10th. Finally, Citigroup assumed coverage on ResMed in a research report on Thursday, September 18th. They issued a "buy" rating and a $330.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $294.20.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.

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