ResMed Inc. $RMD Shares Purchased by Hsbc Holdings PLC

Key Points

• HSBC Holdings increased its ResMed stake by 13.4% in the second quarter, adding 42,007 shares to own 355,518 shares valued at approximately $69.3 million. Institutional investors collectively hold 54.98% of the company.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 in EPS versus the $2.89 consensus, while revenue rose 8.6% year over year to $1.46 billion.
• ResMed raised its quarterly dividend to $0.66 per share, or $2.64 annually, representing a 1.2% yield. Analysts maintain a consensus “Hold” rating with an average price target of $240.31.

Hsbc Holdings PLC grew its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 13.4% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 355,518 shares of the medical equipment provider's stock after buying an additional 42,007 shares during the period. Hsbc Holdings PLC owned about 0.25% of ResMed worth $69,292,000 as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in the company. International Assets Investment Management LLC bought a new position in ResMed during the fourth quarter worth $25,000. Bell Investment Advisors Inc acquired a new position in ResMed in the second quarter worth $26,000. Imprint Wealth LLC bought a new stake in ResMed during the third quarter valued at $26,000. WFA of San Diego LLC bought a new stake in ResMed during the second quarter valued at $26,000. Finally, Sunbelt Securities Inc. acquired a new stake in shares of ResMed during the third quarter worth $31,000. Institutional investors and hedge funds own 54.98% of the company's stock.

ResMed Stock Performance

RMD stock opened at $228.25 on Tuesday. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $284.87. The stock 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. The stock's fifty day moving average is $216.10 and its two-hundred day moving average is $217.79.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 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 business had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the firm earned $2.55 earnings per share. The company's quarterly revenue was up 8.6% on a year-over-year basis. On average, research analysts predict that ResMed Inc. will post 12.02 EPS for the current year.

ResMed Increases Dividend

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

Insider Activity

In other ResMed news, Director Peter Farrell sold 8,000 shares of the firm's stock in a transaction that occurred on 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 sale, the director owned 52,773 shares in the company, valued at approximately $11,873,925. This trade represents a 13.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Farrell sold 4,991 shares of ResMed stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total value of $1,090,783.05. Following the sale, the chief executive officer directly owned 466,223 shares in the company, valued at approximately $101,893,036.65. 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. In the last 90 days, insiders sold 18,952 shares of company stock valued at $4,145,070. 0.65% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Morgan Stanley restated an "equal weight" rating and issued a $230.00 price target (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Wells Fargo & Company lowered their price objective on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a research report on Friday, August 7th. The Goldman Sachs Group reiterated a "buy" rating on shares of ResMed in a research note on Wednesday, July 1st. Rothschild & Co Redburn began coverage on shares of ResMed in a report on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 target price on the stock. Finally, UBS Group restated a "buy" rating and issued a $300.00 target price on shares of ResMed in a research note on Tuesday, July 21st. Six research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, ResMed presently has a consensus rating of "Hold" and a consensus target price 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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