ResMed Inc. $RMD Shares Acquired by Canada Pension Plan Investment Board

Key Points

• The Canada Pension Plan Investment Board increased its stake in ResMed Inc. (NYSE:RMD) by 11.7%, now holding 14,884 shares valued at approximately $3.33 million.
• ResMed recently reported Q2 earnings of $2.55 per share, exceeding estimates, with a revenue of $1.35 billion—up 10.2% year-over-year.
• The company announced a dividend increase from $0.53 to $0.60 per share, representing a yield of 0.9% and a payout ratio of 25.24%.

Canada Pension Plan Investment Board increased its stake in shares of ResMed Inc. (NYSE:RMD - Free Report) by 11.7% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,884 shares of the medical equipment provider's stock after buying an additional 1,556 shares during the quarter. Canada Pension Plan Investment Board's holdings in ResMed were worth $3,332,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the company. Ballentine Partners LLC boosted its position in ResMed by 6.3% during the first quarter. Ballentine Partners LLC now owns 1,782 shares of the medical equipment provider's stock worth $399,000 after purchasing an additional 105 shares during the period. Golden State Wealth Management LLC boosted its stake in ResMed by 384.8% in the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock worth $36,000 after purchasing an additional 127 shares in the last quarter. Exchange Traded Concepts LLC raised its position in ResMed by 393.0% in the 1st quarter. Exchange Traded Concepts LLC now owns 2,529 shares of the medical equipment provider's stock worth $566,000 after buying an additional 2,016 shares during the last quarter. Private Advisor Group LLC increased its holdings in ResMed by 18.3% in the 1st quarter. Private Advisor Group LLC now owns 3,244 shares of the medical equipment provider's stock worth $726,000 after acquiring an additional 501 shares in the last quarter. Finally, BNP Paribas Financial Markets grew its holdings in ResMed by 61.4% during the 4th quarter. BNP Paribas Financial Markets now owns 274,417 shares of the medical equipment provider's stock valued at $62,756,000 after buying an additional 104,377 shares in the last quarter. 54.98% of the stock is owned by institutional investors.

ResMed Stock Up 0.4%

NYSE RMD traded up $0.99 on Monday, hitting $278.04. 370,023 shares of the company were exchanged, compared to its average volume of 1,001,248. The company has a market cap of $40.71 billion, a PE ratio of 29.23, a PEG ratio of 1.85 and a beta of 0.85. ResMed Inc. has a 12 month low of $199.92 and a 12 month high of $293.81. The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. The stock has a fifty day moving average of $272.54 and a 200-day moving average of $247.50.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.08. The company had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. ResMed's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the prior year, the business earned $2.08 earnings per share. As a group, analysts forecast that ResMed Inc. will post 9.47 earnings per share for the current year.

ResMed Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, August 14th will be given a $0.60 dividend. This is an increase from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Thursday, August 14th. ResMed's payout ratio is currently 25.24%.

Insider Buying and Selling at ResMed

In related news, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total value of $2,238,355.32. Following the completion of the transaction, the chief executive officer directly owned 455,503 shares of the company's stock, valued at approximately $127,303,978.44. This represents a 1.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Peter C. Farrell sold 945 shares of ResMed stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total value of $241,438.05. Following the completion of the transaction, the director directly owned 68,273 shares of the company's stock, valued at approximately $17,443,068.77. This represents a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 19,588 shares of company stock valued at $5,289,241. 0.71% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on RMD. UBS Group raised their price target on ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Morgan Stanley set a $286.00 price objective on ResMed and gave the company an "overweight" rating in a research note on Tuesday, May 20th. Mizuho upped their price target on ResMed from $270.00 to $290.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. CLSA raised ResMed from a "hold" rating to an "outperform" rating in a research note on Tuesday, September 2nd. Finally, William Blair upgraded ResMed to a "strong-buy" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, ResMed currently has a consensus rating of "Moderate Buy" and an average price target of $278.36.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.