Vista Investment Management Invests $920,000 in ResMed Inc. $RMD

Key Points

• Vista Investment Management acquired 4,722 ResMed shares in the second quarter, worth approximately $920,000. Institutional investors collectively own 54.98% of the company.
• Analysts maintain a consensus “Hold” rating, with an average price target of $239.38. Meanwhile, company insiders sold 22,973 shares worth about $4.89 million over the past three months.
• ResMed exceeded quarterly earnings expectations with EPS of $2.95 and revenue of $1.46 billion, while revenue rose 8.6% year over year. The company also increased its quarterly dividend from $0.60 to $0.66 per share.

Vista Investment Management acquired a new position in ResMed Inc. (NYSE:RMD - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund acquired 4,722 shares of the medical equipment provider's stock, valued at approximately $920,000.

Other hedge funds also recently bought and sold shares of the company. Imprint Wealth LLC bought a new stake in shares of ResMed during the 3rd quarter valued at about $26,000. WFA of San Diego LLC bought a new position in shares of ResMed in the 2nd quarter worth approximately $26,000. International Assets Investment Management LLC bought a new position in shares of ResMed in the 4th quarter worth approximately $25,000. Sunbelt Securities Inc. bought a new position in ResMed in the third quarter worth approximately $31,000. Finally, Bell Investment Advisors Inc purchased a new position in shares of ResMed during the 2nd quarter worth $26,000. Hedge funds and other institutional investors own 54.98% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. KeyCorp cut their price objective on shares of ResMed from $260.00 to $255.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Rothschild & Co Redburn initiated coverage on ResMed in a report on Wednesday. They issued a "neutral" rating and a $230.00 target price on the stock. Mizuho lowered their target price on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 15th. Citigroup reissued a "neutral" rating and set a $235.00 price target (down from $270.00) on shares of ResMed in a report on Sunday, July 12th. Finally, Royal Bank Of Canada boosted their price target on ResMed from $234.00 to $244.00 and gave the company a "sector perform" rating in a report on Friday, August 7th. Seven analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $239.38.

Insider Buying and Selling

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $205.69, for a total value of $1,026,598.79. Following the completion of the transaction, the chief executive officer directly owned 466,256 shares in the company, valued at $95,904,196.64. This represents a 1.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director directly owned 52,773 shares of the company's stock, valued at approximately $11,873,925. This trade represents a 13.16% 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. Over the last three months, insiders sold 22,973 shares of company stock worth $4,885,436. 0.65% of the stock is owned by insiders.

ResMed Trading Up 1.4%

Shares of ResMed stock opened at $231.62 on Friday. ResMed Inc. has a fifty-two week low of $180.26 and a fifty-two week high of $293.81. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. The company has a market capitalization of $33.41 billion, a P/E ratio of 22.21, a P/E/G ratio of 1.45 and a beta of 0.76. The company has a fifty day moving average of $207.22 and a 200 day moving average of $220.07.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. The business had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The business's quarterly revenue was up 8.6% on a year-over-year basis. During the same period last year, the firm earned $2.55 earnings per share. On average, sell-side analysts anticipate that ResMed Inc. will post 12.03 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, August 20th will be issued a $0.66 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a yield of 1.1%. This is a boost from ResMed's previous quarterly dividend of $0.60. ResMed's payout ratio is presently 25.31%.

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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