Royal Bank of Canada Boosts Stock Holdings in ResMed Inc. $RMD

Key Points

• Royal Bank of Canada increased its stake in ResMed Inc. by 10.3%, owning 314,502 shares valued at approximately $70.4 million.
• ResMed reported a quarterly EPS of $2.55, exceeding analysts' expectations, along with a 10.2% year-over-year revenue increase of $1.35 billion.
• Several analysts have upgraded their ratings for ResMed, with price targets now ranging from $274 to $300, reflecting strong growth projections for the company.

Royal Bank of Canada boosted its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 10.3% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 314,502 shares of the medical equipment provider's stock after buying an additional 29,451 shares during the quarter. Royal Bank of Canada owned approximately 0.21% of ResMed worth $70,401,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Global X Japan Co. Ltd. raised its holdings in ResMed by 121.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock worth $28,000 after purchasing an additional 68 shares during the last quarter. Colonial Trust Co SC raised its holdings in ResMed by 6,250.0% during the 4th quarter. Colonial Trust Co SC now owns 127 shares of the medical equipment provider's stock worth $29,000 after purchasing an additional 125 shares during the last quarter. Golden State Wealth Management LLC raised its holdings in ResMed by 384.8% during 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 during the last quarter. Zions Bancorporation National Association UT bought a new position in ResMed during the 1st quarter worth approximately $45,000. Finally, Groupe la Francaise bought a new position in ResMed during the 1st quarter worth approximately $45,000. Institutional investors own 54.98% of the company's stock.

Insider Activity at ResMed

In related news, Director Peter C. Farrell sold 945 shares of ResMed stock in a transaction on 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 sale, the director owned 68,273 shares of the company's stock, valued at approximately $17,443,068.77. This trade represents a 1.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director John Hernandez sold 2,575 shares of ResMed stock in a transaction on Monday, August 18th. The shares were sold at an average price of $287.10, for a total transaction of $739,282.50. Following the completion of the sale, the director directly owned 4,045 shares of the company's stock, valued at approximately $1,161,319.50. The trade was a 38.90% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 19,588 shares of company stock valued at $5,289,241. 0.71% of the stock is owned by company insiders.

ResMed Trading Down 4.2%

Shares of RMD stock traded down $11.67 during trading hours on Wednesday, hitting $267.52. 250,113 shares of the company were exchanged, compared to its average volume of 996,456. The firm has a market cap of $39.17 billion, a P/E ratio of 28.14, a P/E/G ratio of 1.87 and a beta of 0.85. ResMed Inc. has a fifty-two week low of $199.92 and a fifty-two week high of $293.81. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. The company has a 50 day simple moving average of $273.43 and a two-hundred day simple moving average of $248.06.

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

ResMed Increases Dividend

The firm also recently declared 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 represents a $2.40 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 14th. This is an increase from ResMed's previous quarterly dividend of $0.53. ResMed's payout ratio is 25.24%.

Analyst Ratings Changes

Several research analysts have issued reports on RMD shares. William Blair upgraded shares of ResMed to a "strong-buy" rating in a report on Friday, August 1st. Wall Street Zen lowered shares of ResMed from a "buy" rating to a "hold" rating in a report on Sunday, August 10th. Royal Bank Of Canada raised their price target on shares of ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Morgan Stanley set a $286.00 price target on shares of ResMed and gave the stock an "overweight" rating in a report on Tuesday, May 20th. Finally, CLSA raised shares of ResMed from a "hold" rating to an "outperform" rating in a research report on Tuesday, September 2nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock 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.