Oxbow Advisors LLC Invests $5.57 Million in ResMed Inc. $RMD

Key Points

• Oxbow Advisors acquired 28,583 ResMed shares worth approximately $5.57 million, while other institutional investors also initiated positions; institutions now own 54.98% of the company.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 EPS on $1.46 billion in revenue, with revenue up 8.6% year over year.
• The company increased its quarterly dividend from $0.60 to $0.66 per share, though analyst sentiment remains mixed, with an average “Hold” rating and a $240.17 price target.

Oxbow Advisors LLC purchased a new stake in shares of ResMed Inc. (NYSE:RMD - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 28,583 shares of the medical equipment provider's stock, valued at approximately $5,570,000.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Wealthfront Advisers LLC bought a new position in shares of ResMed during the second quarter valued at approximately $1,705,000. Meeder Advisory Services Inc. purchased a new stake in ResMed during the second quarter worth $442,000. Citizens Financial Group Inc. RI purchased a new stake in ResMed during the second quarter worth $338,000. UNIVEST FINANCIAL Corp bought a new stake in ResMed during the 2nd quarter valued at $2,503,000. Finally, K.J. Harrison & Partners Inc bought a new stake in ResMed during the 2nd quarter valued at $585,000. 54.98% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

RMD has been the subject of several recent research reports. Wells Fargo & Company reduced their price target on ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a research report on Friday, August 7th. Royal Bank Of Canada raised their price objective on ResMed from $234.00 to $244.00 and gave the company a "sector perform" rating in a research report on Friday, August 7th. Citigroup reiterated a "neutral" rating and issued a $235.00 target price (down from $270.00) on shares of ResMed in a research note on Sunday, July 12th. The Goldman Sachs Group reiterated a "buy" rating on shares of ResMed in a report on Wednesday, July 1st. Finally, Mizuho decreased their price target on shares of ResMed from $235.00 to $220.00 and set an "outperform" rating for the company in a research report on Wednesday, July 15th. Seven analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $240.17.

ResMed Stock Down 0.1%

RMD stock opened at $220.25 on Wednesday. The stock has a market capitalization of $31.95 billion, a PE ratio of 21.12, a price-to-earnings-growth ratio of 1.41 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 quick ratio of 2.42, a current ratio of 3.10 and a debt-to-equity ratio of 0.06. The firm has a 50 day moving average of $205.01 and a 200 day moving average of $220.38.

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

ResMed Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.66 per share. This represents a $2.64 annualized dividend and a yield of 1.2%. The ex-dividend date is Thursday, August 20th. This is a boost from ResMed's previous quarterly dividend of $0.60. ResMed's dividend payout ratio (DPR) is presently 25.31%.

Insider Transactions at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $205.69, for a total value of $1,026,598.79. Following the completion of the transaction, the chief executive officer directly owned 466,256 shares in the company, valued at $95,904,196.64. This trade represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of ResMed stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total value of $1,800,000.00. Following the sale, the director directly owned 52,773 shares of the company's stock, valued at $11,873,925. This trade represents a 13.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,973 shares of company stock worth $4,885,436 over the last three months. Corporate insiders own 0.65% of the company's stock.

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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