ResMed Inc. $RMD Shares Acquired by Giverny Capital Inc.

Key Points

• Giverny Capital increased its ResMed stake by 68.5% in the second quarter, acquiring 157,660 additional shares and bringing its holdings to 387,665 shares worth approximately $75.5 million.
• ResMed reported quarterly EPS of $2.95, exceeding expectations, while revenue rose 8.6% year over year to $1.46 billion. The company also raised its quarterly dividend to $0.66 per share, implying a 1.2% annualized yield.
• Analyst sentiment remains mixed, with six Buy ratings and ten Holds; the consensus rating is Hold and the average price target is $240.31. Meanwhile, insiders sold 18,952 shares worth about $4.1 million during the last quarter.

Giverny Capital Inc. lifted its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 68.5% during the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 387,665 shares of the medical equipment provider's stock after buying an additional 157,660 shares during the period. ResMed accounts for approximately 2.6% of Giverny Capital Inc.'s portfolio, making the stock its 18th largest holding. Giverny Capital Inc. owned approximately 0.27% of ResMed worth $75,548,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. Terra Nova Asset Management LLC lifted its stake in shares of ResMed by 0.6% during the 3rd quarter. Terra Nova Asset Management LLC now owns 7,805 shares of the medical equipment provider's stock worth $2,136,000 after purchasing an additional 46 shares during the period. Kera Capital Partners Inc. grew its position in shares of ResMed by 6.6% in the fourth quarter. Kera Capital Partners Inc. now owns 841 shares of the medical equipment provider's stock valued at $217,000 after purchasing an additional 52 shares during the period. Andina Capital Management LLC grew its position in shares of ResMed by 2.9% in the fourth quarter. Andina Capital Management LLC now owns 1,988 shares of the medical equipment provider's stock valued at $479,000 after purchasing an additional 56 shares during the period. Turtle Creek Wealth Advisors LLC increased its stake in ResMed by 6.2% in the first quarter. Turtle Creek Wealth Advisors LLC now owns 994 shares of the medical equipment provider's stock valued at $223,000 after purchasing an additional 58 shares during the last quarter. Finally, Inspire Investing LLC increased its stake in ResMed by 7.9% in the fourth quarter. Inspire Investing LLC now owns 902 shares of the medical equipment provider's stock valued at $217,000 after purchasing an additional 66 shares during the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

Insider Buying and Selling at ResMed

In other ResMed news, Director Peter Farrell sold 970 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total transaction of $227,688.10. Following the transaction, the director owned 51,803 shares in the company, valued at $12,159,718.19. The trade was a 1.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael 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 transaction of $1,026,598.79. Following the completion of the sale, the chief executive officer directly owned 466,256 shares of the company's stock, valued at $95,904,196.64. This trade represents a 1.06% 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. Over the last quarter, insiders sold 18,952 shares of company stock valued at $4,145,070. 0.65% of the stock is owned by insiders.

ResMed Trading Down 0.0%

NYSE RMD opened at $228.25 on Monday. The firm has a market capitalization of $32.93 billion, a price-to-earnings ratio of 21.88, a PEG ratio of 1.44 and a beta of 0.77. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. ResMed Inc. has a one year low of $180.26 and a one year high of $284.87. The company's 50 day moving average price is $215.51 and its 200 day moving average price is $217.98.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.89 by $0.06. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the previous year, the firm earned $2.55 earnings per share. ResMed's revenue for the quarter was up 8.6% on a year-over-year basis. On average, sell-side analysts predict that ResMed Inc. will post 12.02 EPS for the current year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, August 20th will be given a dividend of $0.66 per share. This is a positive change from ResMed's previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a yield of 1.2%. ResMed's dividend payout ratio is currently 25.31%.

Analyst Ratings Changes

Several analysts have commented on RMD shares. Piper Sandler lowered their price target on ResMed from $233.00 to $225.00 and set a "neutral" rating for the company in a report on Friday, August 7th. Robert W. Baird set a $213.00 price objective on shares of ResMed in a report on Friday, August 7th. Mizuho decreased their target price on shares of ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 15th. Royal Bank Of Canada boosted their target price on shares of ResMed from $234.00 to $244.00 and gave the company a "sector perform" rating in a report on Friday, August 7th. Finally, Jefferies Financial Group dropped their price target on shares of ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research report on Friday, July 10th. Six equities 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 presently has a consensus rating of "Hold" and an average price target of $240.31.

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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