ResMed Inc. $RMD Shares Purchased by State Street Corp

Key Points

• State Street increased its ResMed stake by 0.6% in the second quarter, owning 6.68 million shares worth approximately $1.30 billion, or 4.63% of the company. Institutional investors and hedge funds collectively own 54.98% of ResMed.
• Analysts have a consensus “Hold” rating with a $241.69 price target, reflecting seven Buy ratings and nine Hold ratings. ResMed shares opened at $222.81, while the stock’s one-year range is $180.26 to $284.87.
• ResMed exceeded quarterly EPS expectations, reporting $2.95 versus the $2.89 consensus, while revenue rose 8.6% year over year to $1.46 billion. The company also raised its quarterly dividend to $0.66 per share, equivalent to a 1.2% yield.

State Street Corp lifted its stake in shares of ResMed Inc. (NYSE:RMD - Free Report) by 0.6% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 6,680,735 shares of the medical equipment provider's stock after buying an additional 37,567 shares during the quarter. State Street Corp owned approximately 4.63% of ResMed worth $1,301,942,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Kera Capital Partners Inc. grew its stake in shares of ResMed by 6.6% during the fourth quarter. Kera Capital Partners Inc. now owns 841 shares of the medical equipment provider's stock worth $217,000 after purchasing an additional 52 shares in the last quarter. Andina Capital Management LLC boosted its holdings in 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 in the last quarter. Turtle Creek Wealth Advisors LLC boosted its holdings 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 in the last quarter. Meridian Management Co. increased its stake in ResMed by 0.6% in the first quarter. Meridian Management Co. now owns 11,332 shares of the medical equipment provider's stock valued at $2,544,000 after purchasing an additional 70 shares during the last quarter. Finally, Glenmede Trust Co. NA increased its stake in ResMed by 1.3% in the first quarter. Glenmede Trust Co. NA now owns 5,479 shares of the medical equipment provider's stock valued at $1,230,000 after purchasing an additional 71 shares during the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. The Goldman Sachs Group reaffirmed a "buy" rating on shares of ResMed in a research report on Wednesday, July 1st. Royal Bank Of Canada upgraded shares of ResMed from a "sector perform" rating to an "outperform" rating and upped their price objective for the company from $244.00 to $262.00 in a research note on Tuesday, September 15th. Morgan Stanley reaffirmed an "equal weight" rating and set a $230.00 price objective (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. Mizuho cut their target price on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 15th. Finally, Rothschild & Co Redburn initiated coverage on ResMed in a report on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 target price for the company. Seven equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $241.69.

ResMed Stock Down 0.4%

RMD opened at $222.81 on Wednesday. ResMed Inc. has a one year low of $180.26 and a one year high of $284.87. 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 business's fifty day moving average is $220.04 and its two-hundred day moving average is $215.20. The company has a market cap of $32.14 billion, a price-to-earnings ratio of 21.36, a PEG ratio of 1.41 and a beta of 0.77.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $1.46 billion. During the same quarter in the previous year, the business posted $2.55 earnings per share. The firm's quarterly revenue was up 8.6% compared to the same quarter last year. Analysts anticipate that ResMed Inc. will post 12.06 EPS for the current fiscal year.

ResMed Increases Dividend

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

Insiders Place Their Bets

In related news, CEO Michael J. Farrell sold 4,991 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $205.69, for a total value of $1,026,598.79. Following the completion of the transaction, the chief executive officer owned 466,256 shares of the company's stock, valued at approximately $95,904,196.64. The trade was a 1.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director directly owned 52,773 shares in the company, valued at $11,873,925. This represents a 13.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 23,943 shares of company stock valued at $5,255,268. Insiders own 0.65% of the company's stock.

ResMed Profile

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.

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