OVERSEA CHINESE BANKING Corp Ltd Makes New Investment in ResMed Inc. $RMD

Key Points

• Oversea-Chinese Banking Corp. acquired 24,458 ResMed shares in the second quarter, valued at approximately $4.8 million. Institutional investors and hedge funds collectively own 54.98% of the company.
• ResMed reported quarterly earnings of $2.95 per share, exceeding estimates by $0.06, while revenue reached $1.46 billion, up 8.6% year over year. The company also raised its quarterly dividend to $0.66 per share.
• Analysts maintain a generally cautious view, with seven Buy ratings and ten Hold ratings, resulting in an overall “Hold” consensus and an average price target of $239.38. Company insiders sold nearly 23,000 shares worth about $4.9 million over the past three months.

OVERSEA CHINESE BANKING Corp Ltd bought a new position in ResMed Inc. (NYSE:RMD - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 24,458 shares of the medical equipment provider's stock, valued at approximately $4,766,000.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. International Assets Investment Management LLC acquired a new position in shares of ResMed during the 4th quarter valued at $25,000. Bell Investment Advisors Inc purchased a new position in ResMed in the second quarter valued at about $26,000. Imprint Wealth LLC acquired a new stake in shares of ResMed during the third quarter worth approximately $26,000. WFA of San Diego LLC acquired a new position in ResMed during the 2nd quarter worth $26,000. Finally, Sunbelt Securities Inc. acquired a new position in ResMed in the third quarter worth about $31,000. 54.98% of the stock is owned by institutional investors and hedge funds.

ResMed Stock Performance

RMD stock opened at $228.81 on Friday. The stock has a market cap of $33.01 billion, a P/E ratio of 21.94, a P/E/G ratio of 1.45 and a beta of 0.76. ResMed Inc. has a 52 week low of $180.26 and a 52 week high of $293.81. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. The firm has a 50 day simple moving average of $206.48 and a 200 day simple moving average of $219.98.

ResMed (NYSE:RMD - Get Free Report) last issued its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The business's quarterly revenue was up 8.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.55 earnings per share. Research analysts anticipate that ResMed Inc. will post 12.03 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.66 per share. The ex-dividend date of this dividend is Thursday, August 20th. This is a positive change from ResMed's previous quarterly dividend of $0.60. This represents a $2.64 annualized dividend and a yield of 1.2%. ResMed's dividend payout ratio (DPR) is currently 23.01%.

Wall Street Analyst Weigh In

Several analysts have weighed in on RMD shares. Rothschild & Co Redburn initiated coverage on shares of ResMed in a research note on Wednesday. They set a "neutral" rating and a $230.00 target price for the company. Mizuho cut their target price on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 15th. Morgan Stanley reaffirmed an "equal weight" rating and issued a $230.00 price target (down from $286.00) on shares of ResMed in a research note on Wednesday, June 17th. Robert W. Baird set a $213.00 target price on ResMed in a research note on Friday, August 7th. Finally, Piper Sandler decreased their price target on shares of ResMed from $233.00 to $225.00 and set a "neutral" rating on the stock in a research report on Friday, August 7th. Seven equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $239.38.

Insider Buying and Selling

In other ResMed news, Director Peter C. Farrell sold 8,000 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the director owned 52,773 shares of the company's stock, valued at $11,873,925. The trade was a 13.16% decrease in their position. 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. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $205.69, for a total value of $1,026,598.79. Following the sale, the chief executive officer owned 466,256 shares of the company's stock, valued at approximately $95,904,196.64. The trade was a 1.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 22,973 shares of company stock worth $4,885,436 over the last three months. 0.65% of the stock is owned by company insiders.

ResMed Company 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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