SG Americas Securities LLC Raises Stock Holdings in ResMed Inc. $RMD

Key Points

• SG Americas Securities LLC more than doubled its stake in ResMed in the first quarter, raising its holdings by 111.1% to 97,275 shares valued at about $21.8 million.
• ResMed reported better-than-expected quarterly results, posting EPS of $2.86 versus estimates of $2.79 and revenue of $1.43 billion, with sales up 10.8% year over year.
• Analysts remain generally positive on the stock, with a Moderate Buy consensus and an average target price of $270.82, though several firms recently trimmed their price targets.

SG Americas Securities LLC lifted its stake in shares of ResMed Inc. (NYSE:RMD - Free Report) by 111.1% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 97,275 shares of the medical equipment provider's stock after acquiring an additional 51,201 shares during the quarter. SG Americas Securities LLC owned approximately 0.07% of ResMed worth $21,836,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. International Assets Investment Management LLC purchased a new position in ResMed during the fourth quarter valued at approximately $25,000. ORG Partners LLC increased its stake in shares of ResMed by 181.6% in the fourth quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock worth $26,000 after purchasing an additional 69 shares in the last quarter. Imprint Wealth LLC purchased a new stake in shares of ResMed in the third quarter worth $26,000. WFA of San Diego LLC bought a new stake in shares of ResMed during the 2nd quarter valued at $26,000. Finally, Sunbelt Securities Inc. purchased a new position in shares of ResMed during the 3rd quarter valued at $31,000. 54.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently weighed in on RMD shares. Robert W. Baird set a $225.00 target price on shares of ResMed in a report on Friday, May 1st. KeyCorp lowered their price objective on ResMed from $290.00 to $266.00 and set an "overweight" rating on the stock in a research report on Monday. Wells Fargo & Company dropped their price objective on ResMed from $270.00 to $227.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. Wall Street Zen downgraded ResMed from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Finally, JPMorgan Chase & Co. began coverage on ResMed in a report on Wednesday, April 15th. They issued an "overweight" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $270.82.

ResMed Stock Performance

Shares of NYSE RMD opened at $196.34 on Thursday. The company has a market cap of $28.48 billion, a P/E ratio of 18.93, a P/E/G ratio of 1.22 and a beta of 0.80. ResMed Inc. has a 52-week low of $180.26 and a 52-week high of $293.81. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01. The firm's fifty day moving average is $204.53 and its two-hundred day moving average is $231.80.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter in the prior year, the firm earned $2.37 EPS. The business's revenue was up 10.8% on a year-over-year basis. As a group, analysts anticipate that ResMed Inc. will post 11.13 EPS for the current fiscal year.

ResMed Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th were given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Thursday, May 14th. ResMed's dividend payout ratio is currently 23.14%.

Insider Buying and Selling

In related news, Director Peter C. Farrell sold 2,000 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total value of $450,000.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $193.96, for a total transaction of $968,054.36. Following the transaction, the chief executive officer owned 466,256 shares of the company's stock, valued at $90,435,013.76. This trade represents a 1.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 16,973 shares of company stock valued at $3,580,754 over the last quarter. Corporate insiders own 0.65% of the company's stock.

About ResMed

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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