ResMed Inc. $RMD Shares Acquired by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon boosted its ResMed stake by 7.4% in the fourth quarter, buying 337,738 more shares and ending with 4.89 million shares valued at about $1.18 billion.
• ResMed reported better-than-expected quarterly results, with EPS of $2.86 versus the $2.79 estimate and revenue of $1.43 billion, up 10.8% from a year earlier.
• The company declared a quarterly dividend of $0.60 per share, while analysts currently rate the stock a “Moderate Buy” with a consensus price target of $286.18.

Bank of New York Mellon Corp lifted its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 7.4% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 4,890,654 shares of the medical equipment provider's stock after purchasing an additional 337,738 shares during the period. Bank of New York Mellon Corp owned about 3.36% of ResMed worth $1,178,012,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in RMD. International Assets Investment Management LLC acquired a new stake in shares of ResMed during the fourth quarter worth about $25,000. ORG Partners LLC increased its position in shares of ResMed by 181.6% during the fourth quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock worth $26,000 after purchasing an additional 69 shares in the last quarter. Imprint Wealth LLC acquired a new stake in shares of ResMed during the third quarter worth about $26,000. WFA of San Diego LLC acquired a new stake in shares of ResMed during the second quarter worth about $26,000. Finally, Sunbelt Securities Inc. acquired a new stake in shares of ResMed during the third quarter worth about $31,000. Institutional investors and hedge funds own 54.98% of the company's stock.

ResMed Price Performance

Shares of NYSE:RMD opened at $183.01 on Wednesday. The business's 50 day simple moving average is $216.11 and its 200-day simple moving average is $238.80. The firm has a market capitalization of $26.55 billion, a price-to-earnings ratio of 17.65, a price-to-earnings-growth ratio of 1.19 and a beta of 0.80. 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 $180.26 and a 12 month high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.79 by $0.07. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The firm had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same period in the previous year, the firm posted $2.37 EPS. The company's quarterly revenue was up 10.8% compared to the same quarter last year. As a group, equities analysts forecast that ResMed Inc. will post 11.13 earnings per share for the current fiscal year.

ResMed Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th will be issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Thursday, May 14th. ResMed's dividend payout ratio is 23.14%.

Analyst Ratings Changes

A number of research firms have recently commented on RMD. Wells Fargo & Company cut their target price on ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a research report on Friday, May 1st. Robert W. Baird set a $225.00 price target on ResMed in a report on Friday, May 1st. Citigroup lowered their price target on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a report on Thursday, April 9th. Royal Bank Of Canada raised their price target on ResMed from $314.00 to $321.00 and gave the stock an "outperform" rating in a report on Friday, May 1st. Finally, KeyCorp lowered their price target on ResMed from $302.00 to $290.00 and set an "overweight" rating on the stock in a report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $286.18.

Insider Transactions at ResMed

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total transaction of $450,000.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Michael J. Farrell sold 4,991 shares of the business's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $251.03, for a total transaction of $1,252,890.73. Following the completion of the transaction, the chief executive officer directly owned 466,223 shares of the company's stock, valued at approximately $117,035,959.69. This represents a 1.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 16,973 shares of company stock worth $3,865,591. 0.65% of the stock is 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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