Tandem Investment Advisors Inc. Cuts Holdings in ResMed Inc. $RMD

Key Points

• Tandem Investment Advisors trimmed its ResMed stake by 1.0% in the fourth quarter, selling 5,071 shares and ending with 500,145 shares worth about $120.5 million.
• ResMed’s latest quarterly results beat expectations, with EPS of $2.86 and revenue of $1.43 billion, while revenue rose 10.8% year over year.
• The company also announced a quarterly dividend of $0.60 per share, and analysts currently rate the stock a Moderate Buy with an average target price of $286.18.

Tandem Investment Advisors Inc. cut its holdings in shares of ResMed Inc. (NYSE:RMD - Free Report) by 1.0% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 500,145 shares of the medical equipment provider's stock after selling 5,071 shares during the period. ResMed accounts for 4.5% of Tandem Investment Advisors Inc.'s portfolio, making the stock its 6th biggest position. Tandem Investment Advisors Inc. owned approximately 0.34% of ResMed worth $120,470,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Terra Nova Asset Management LLC increased its position in ResMed by 0.6% during the 3rd quarter. Terra Nova Asset Management LLC now owns 7,805 shares of the medical equipment provider's stock valued at $2,136,000 after purchasing an additional 46 shares during the period. IMA Advisory Services Inc. boosted its stake in shares of ResMed by 52.7% during the 3rd quarter. IMA Advisory Services Inc. now owns 139 shares of the medical equipment provider's stock valued at $38,000 after purchasing an additional 48 shares in the last quarter. Occidental Asset Management LLC boosted its stake in shares of ResMed by 3.0% during the 4th quarter. Occidental Asset Management LLC now owns 1,699 shares of the medical equipment provider's stock valued at $409,000 after purchasing an additional 49 shares in the last quarter. Wedmont Private Capital increased its position in shares of ResMed by 2.7% during the fourth quarter. Wedmont Private Capital now owns 2,183 shares of the medical equipment provider's stock valued at $542,000 after buying an additional 57 shares during the period. Finally, New Wave Wealth Advisors LLC raised its stake in ResMed by 3.0% in the fourth quarter. New Wave Wealth Advisors LLC now owns 1,956 shares of the medical equipment provider's stock worth $471,000 after buying an additional 57 shares in the last quarter. Institutional investors own 54.98% of the company's stock.

ResMed Trading Down 0.0%

Shares of NYSE RMD opened at $208.04 on Tuesday. The firm's 50 day moving average price is $219.24 and its 200-day moving average price is $240.60. ResMed Inc. has a 52-week low of $198.61 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 company has a market cap of $30.31 billion, a PE ratio of 20.06, a P/E/G ratio of 1.33 and a beta of 0.84.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, topping analysts' consensus estimates of $2.79 by $0.07. The company had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The firm's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period in the previous year, the business earned $2.37 EPS. On average, equities research analysts expect that ResMed Inc. will post 11.13 EPS for the current fiscal year.

ResMed Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th will be paid a $0.60 dividend. The ex-dividend date is Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. ResMed's payout ratio is currently 23.14%.

Insider Buying and Selling at ResMed

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total value of $450,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $251.03, for a total transaction of $1,252,890.73. Following the transaction, the chief executive officer owned 466,223 shares in the company, valued at $117,035,959.69. This represents a 1.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 18,973 shares of company stock valued at $4,386,031 in the last 90 days. Company insiders own 0.65% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. Citigroup cut their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a research report on Thursday, April 9th. Royal Bank Of Canada increased their target price on ResMed from $314.00 to $321.00 and gave the stock an "outperform" rating in a research report on Friday, May 1st. Stifel Nicolaus lifted their price target on ResMed from $260.00 to $265.00 and gave the company a "hold" rating in a research report on Friday, January 30th. Piper Sandler upped their price target on ResMed from $270.00 to $275.00 and gave the stock a "neutral" rating in a research note on Friday, January 30th. Finally, Wells Fargo & Company decreased their price objective on ResMed from $270.00 to $227.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $286.18.

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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