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

Key Points

• Bank of New York Mellon increased its ResMed stake by 0.7% in the first quarter, ending with 4,925,386 shares worth about $1.11 billion.
• ResMed reported better-than-expected quarterly results, with EPS of $2.86 and revenue of $1.43 billion, both slightly ahead of analyst estimates. Revenue also rose 10.8% year over year.
• Wall Street sentiment remains cautiously positive: the stock has a Moderate Buy consensus rating, with a consensus price target of $253.50, while the shares recently traded around $198.46.

Bank of New York Mellon Corp increased its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 0.7% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 4,925,386 shares of the medical equipment provider's stock after purchasing an additional 34,732 shares during the quarter. Bank of New York Mellon Corp owned 3.38% of ResMed worth $1,105,651,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in the business. Jones Financial Companies Lllp grew its holdings in shares of ResMed by 52.6% during the first quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider's stock valued at $645,000 after purchasing an additional 994 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of ResMed in the 2nd quarter worth approximately $389,000. Brown Advisory Inc. boosted its position in ResMed by 17.8% during the 2nd quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider's stock valued at $409,000 after purchasing an additional 240 shares during the period. Cresset Asset Management LLC acquired a new position in ResMed during the 2nd quarter valued at approximately $206,000. Finally, Alliancebernstein L.P. grew its stake in ResMed by 24.2% during the 2nd quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider's stock worth $73,808,000 after buying an additional 55,790 shares during the last quarter. Institutional investors own 54.98% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on RMD. Evercore set a $255.00 target price on ResMed and gave the stock an "outperform" rating in a research report on Monday, April 13th. Citigroup restated a "neutral" rating and set a $235.00 price target (down from $270.00) on shares of ResMed in a research report on Sunday. The Goldman Sachs Group reaffirmed a "buy" rating on shares of ResMed in a report on Wednesday, July 1st. Morgan Stanley reiterated an "equal weight" rating and issued a $230.00 price objective (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Finally, Jefferies Financial Group reduced their target price on shares of ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $253.50.

Insider Buying and Selling at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the completion of the transaction, the chief executive officer owned 466,223 shares in the company, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,973 shares of company stock worth $3,096,067. Company insiders own 0.65% of the company's stock.

ResMed Stock Performance

Shares of NYSE RMD opened at $198.46 on Thursday. The stock has a fifty day moving average price of $199.64 and a two-hundred day moving average price of $227.13. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01. The firm has a market cap of $28.79 billion, a P/E ratio of 19.14, a PEG ratio of 1.15 and a beta of 0.78. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $293.81.

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

ResMed Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th were issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Thursday, May 14th. ResMed's dividend payout ratio is presently 23.14%.

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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