Parkman Healthcare Partners LLC Makes New Investment in ResMed Inc. $RMD

Key Points

• Parkman Healthcare Partners initiated a ResMed position by purchasing 32,983 shares worth approximately $6.4 million in the second quarter. Other institutions also added stakes, bringing institutional ownership to 54.98%.
• ResMed reported quarterly adjusted earnings of $2.95 per share, beating estimates by $0.06, while revenue rose 8.6% year over year to $1.46 billion.
• The company increased its quarterly dividend from $0.60 to $0.66 per share, implying an annualized dividend of $2.64 and a 1.1% yield. Analysts maintain a consensus “Hold” rating with a $239.38 target price.

Parkman Healthcare Partners LLC acquired a new stake in ResMed Inc. (NYSE:RMD - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 32,983 shares of the medical equipment provider's stock, valued at approximately $6,428,000.

Other institutional investors have also recently modified their holdings of the company. Legal & General Group Plc bought a new position in shares of ResMed in the second quarter worth $183,697,000. The Manufacturers Life Insurance Company bought a new stake in ResMed during the second quarter worth about $14,380,000. Cibc World Market Inc. bought a new stake in ResMed during the second quarter worth about $6,034,000. OMERS ADMINISTRATION Corp acquired a new stake in ResMed during the second quarter worth about $4,308,000. Finally, Osmosis Investment Management UK Ltd acquired a new stake in ResMed during the second quarter worth about $2,159,000. 54.98% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the company'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 owned 466,256 shares of the company's stock, valued at $95,904,196.64. This represents a 1.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total value 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. This represents a 13.16% decrease in their ownership of the stock. 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 valued at $4,885,436 over the last quarter. 0.65% of the stock is owned by corporate insiders.

ResMed Trading Up 0.5%

Shares of ResMed stock opened at $232.57 on Tuesday. The firm's 50 day moving average is $208.01 and its 200 day moving average is $219.69. The firm has a market capitalization of $33.55 billion, a PE ratio of 22.30, a price-to-earnings-growth ratio of 1.45 and a beta of 0.76. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $293.58. The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06.

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

ResMed Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be paid a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, August 20th. This is a positive change from ResMed's previous quarterly dividend of $0.60. ResMed's dividend payout ratio is currently 25.31%.

Wall Street Analysts Forecast Growth

RMD has been the subject of several analyst reports. Citigroup restated a "neutral" rating and issued a $235.00 target price (down from $270.00) on shares of ResMed in a research report on Sunday, July 12th. Piper Sandler reduced 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. Royal Bank Of Canada lifted their price objective on shares of ResMed from $234.00 to $244.00 and gave the company a "sector perform" rating in a research note on Friday, August 7th. Morgan Stanley restated 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. Finally, Rothschild & Co Redburn assumed coverage on ResMed in a report on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 target price on the stock. Seven research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, ResMed currently has a consensus rating of "Hold" and a consensus target price of $239.38.

About ResMed

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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