ResMed Inc. $RMD Shares Sold by Baird Financial Group Inc.

Key Points

• Baird Financial Group cut its ResMed stake by 98.6% in the second quarter, selling 104,473 shares and retaining 1,467 shares valued at approximately $286,000. Institutional investors and hedge funds collectively own 54.98% of ResMed.
• ResMed reported quarterly earnings of $2.95 per share, beating estimates by $0.06, while revenue rose 8.6% year over year to $1.46 billion. The company also increased its quarterly dividend from $0.60 to $0.66 per share.
• Analysts maintain a consensus “Hold” rating on RMD, with seven Buy ratings and nine Holds and an average price target of $241.69, compared with the stock’s reported price of $222.81.

Baird Financial Group Inc. decreased its stake in ResMed Inc. (NYSE:RMD - Free Report) by 98.6% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,467 shares of the medical equipment provider's stock after selling 104,473 shares during the quarter. Baird Financial Group Inc.'s holdings in ResMed were worth $286,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Allworth Financial LP raised its position in shares of ResMed by 26.6% in the second quarter. Allworth Financial LP now owns 1,286 shares of the medical equipment provider's stock worth $251,000 after acquiring an additional 270 shares during the period. Arizona State Retirement System grew its position in shares of ResMed by 5.3% during the 2nd quarter. Arizona State Retirement System now owns 41,768 shares of the medical equipment provider's stock valued at $8,140,000 after acquiring an additional 2,104 shares during the period. Empirical Finance LLC increased its stake in shares of ResMed by 3.4% in the 2nd quarter. Empirical Finance LLC now owns 5,130 shares of the medical equipment provider's stock valued at $1,000,000 after purchasing an additional 170 shares in the last quarter. Nykredit A S purchased a new position in shares of ResMed in the 2nd quarter valued at about $66,006,000. Finally, Giverny Capital Inc. raised its holdings in ResMed by 68.5% in the 2nd quarter. Giverny Capital Inc. now owns 387,665 shares of the medical equipment provider's stock worth $75,548,000 after purchasing an additional 157,660 shares during the period. 54.98% of the stock is owned by institutional investors and hedge funds.

ResMed Stock Performance

NYSE RMD opened at $222.81 on Wednesday. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. The stock's 50 day simple moving average is $220.04 and its 200-day simple moving average is $215.20. The company has a market cap of $32.14 billion, a PE ratio of 21.36, a price-to-earnings-growth ratio of 1.41 and a beta of 0.77. ResMed Inc. has a 1-year low of $180.26 and a 1-year high of $284.87.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. The company had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The firm's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter last year, the firm posted $2.55 EPS. As a group, equities research analysts anticipate that ResMed Inc. will post 12.06 EPS for the current fiscal year.

ResMed Increases Dividend

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

Analyst Ratings Changes

A number of brokerages have issued reports on RMD. UBS Group reiterated a "buy" rating and set a $300.00 price target on shares of ResMed in a research report on Tuesday, July 21st. Citigroup restated a "neutral" rating on shares of ResMed in a research report on Thursday, September 10th. Rothschild & Co Redburn initiated coverage on ResMed in a research note on Wednesday, August 19th. They set a "neutral" rating and a $230.00 target price for the company. KeyCorp increased their target price on ResMed from $255.00 to $267.00 and gave the company an "overweight" rating in a research report on Monday, August 31st. Finally, Jefferies Financial Group dropped their price target on shares of ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. Seven analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $241.69.

Insider Transactions at ResMed

In other ResMed news, Director Peter Farrell sold 970 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $234.73, for a total value of $227,688.10. Following the transaction, the director directly owned 51,803 shares of the company's stock, valued at $12,159,718.19. This trade represents a 1.84% decrease in their position. The transaction 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 business's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $222.44, for a total value of $1,110,198.04. Following the transaction, the chief executive officer owned 466,256 shares in the company, valued at approximately $103,713,984.64. This represents a 1.06% decrease in their ownership of the stock. 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 quarter, insiders sold 23,943 shares of company stock valued at $5,255,268. 0.65% of the stock is owned by insiders.

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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