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

Key Points

• Tandem Investment Advisors cut its ResMed stake by 12.6% in Q1, selling 63,233 shares and leaving the firm with 436,912 shares worth about $98.1 million.
• ResMed’s latest results topped expectations, with quarterly EPS of $2.86 versus $2.79 estimated and revenue of $1.43 billion, up 10.8% year over year.
• The company also paid a quarterly dividend of $0.60 per share, while analysts currently rate the stock a consensus “Moderate Buy” with a $250 price target.

Tandem Investment Advisors Inc. lowered its stake in shares of ResMed Inc. (NYSE:RMD - Free Report) by 12.6% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 436,912 shares of the medical equipment provider's stock after selling 63,233 shares during the quarter. ResMed comprises 4.8% of Tandem Investment Advisors Inc.'s portfolio, making the stock its 3rd largest holding. Tandem Investment Advisors Inc. owned approximately 0.30% of ResMed worth $98,078,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in RMD. First Trust Advisors LP raised its position in shares of ResMed by 240.9% in the fourth quarter. First Trust Advisors LP now owns 1,517,592 shares of the medical equipment provider's stock valued at $365,542,000 after purchasing an additional 1,072,394 shares during the period. Norges Bank bought a new stake in shares of ResMed during the 4th quarter worth $249,068,000. Deutsche Bank AG grew its stake in ResMed by 126.0% in the 4th quarter. Deutsche Bank AG now owns 1,413,477 shares of the medical equipment provider's stock valued at $340,464,000 after buying an additional 787,949 shares during the last quarter. Morgan Stanley grew its stake in ResMed by 25.0% in the 4th quarter. Morgan Stanley now owns 2,891,697 shares of the medical equipment provider's stock valued at $696,523,000 after buying an additional 578,559 shares during the last quarter. Finally, Swedbank AB raised its holdings in ResMed by 103.1% in the 4th quarter. Swedbank AB now owns 1,102,476 shares of the medical equipment provider's stock worth $265,553,000 after acquiring an additional 559,765 shares during the period. Institutional investors and hedge funds own 54.98% of the company's stock.

Insider Buying and Selling

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total value of $1,090,783.05. Following the sale, the chief executive officer directly owned 466,223 shares in the company, valued at $101,893,036.65. This represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 14,973 shares of company stock valued at $3,096,067. 0.65% of the stock is owned by insiders.

ResMed Stock Down 1.9%

Shares of RMD opened at $198.86 on Friday. The stock has a market cap of $28.85 billion, a price-to-earnings ratio of 19.18, a P/E/G ratio of 1.19 and a beta of 0.78. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. ResMed Inc. has a 12 month low of $180.26 and a 12 month high of $293.81. The company has a 50-day moving average price of $199.40 and a two-hundred day moving average price of $226.64.

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

ResMed Announces Dividend

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

Analysts Set New Price Targets

A number of research firms have weighed in on RMD. Jefferies Financial Group cut their target price on shares of ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research report on Friday, July 10th. Wells Fargo & Company dropped their price objective on ResMed from $227.00 to $225.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 8th. Evercore set a $255.00 price objective on ResMed and gave the stock an "outperform" rating in a research report on Monday, April 13th. KeyCorp cut their price objective on ResMed from $290.00 to $266.00 and set an "overweight" rating for the company in a research report on Monday, June 22nd. Finally, The Goldman Sachs Group restated a "buy" rating on shares of ResMed in a research note on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $250.00.

ResMed 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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