XY Capital Ltd Buys Shares of 36,769 ResMed Inc. $RMD

Key Points

• XY Capital Ltd. acquired 36,769 ResMed shares worth approximately $7.17 million, making ResMed its fourth-largest holding and representing 6.9% of its portfolio. Institutional investors own 54.98% of the stock.
• ResMed’s latest quarterly results exceeded expectations, with earnings of $2.95 per share and revenue of $1.46 billion, up 8.6% year over year. Analysts maintain a consensus “Hold” rating with a $239.38 price target.
• The company raised its quarterly dividend from $0.60 to $0.66 per share, equivalent to an annualized $2.64 payout and a 1.2% yield. Insiders sold 22,973 shares worth $4.89 million over the past 90 days.

XY Capital Ltd acquired a new position in shares of ResMed Inc. (NYSE:RMD - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm acquired 36,769 shares of the medical equipment provider's stock, valued at approximately $7,166,000. ResMed accounts for 6.9% of XY Capital Ltd's holdings, making the stock its 4th biggest holding.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in RMD. OVERSEA CHINESE BANKING Corp Ltd acquired a new position in ResMed in the second quarter valued at about $1,949,000. E Fund Management Co. Ltd. acquired a new stake in shares of ResMed during the second quarter worth about $402,000. one8zero8 LLC acquired a new stake in shares of ResMed during the second quarter worth about $205,000. Empirical Asset Management LLC bought a new position in shares of ResMed during the 2nd quarter valued at about $500,000. Finally, Great Lakes Advisors LLC bought a new position in shares of ResMed during the 2nd quarter valued at about $207,000. 54.98% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Rothschild & Co Redburn started coverage on ResMed in a research report on Wednesday. They issued a "neutral" rating and a $230.00 price objective for the company. Robert W. Baird set a $213.00 target price on shares of ResMed in a report on Friday, August 7th. Wells Fargo & Company cut their price target on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating on the stock in a research note on Friday, August 7th. The Goldman Sachs Group restated a "buy" rating on shares of ResMed in a report on Wednesday, July 1st. Finally, Royal Bank Of Canada lifted their price target on ResMed from $234.00 to $244.00 and gave the company a "sector perform" rating in a research note on Friday, August 7th. Seven equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $239.38.

ResMed Stock Down 0.8%

RMD opened at $228.81 on Friday. The stock's fifty day simple moving average is $206.48 and its 200 day simple moving average is $219.98. ResMed Inc. has a 1-year low of $180.26 and a 1-year high of $293.81. The stock has a market cap of $33.01 billion, a PE ratio of 21.94, a price-to-earnings-growth ratio of 1.45 and a beta of 0.76. The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, topping analysts' consensus estimates of $2.89 by $0.06. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The firm had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same period in the previous year, the business posted $2.55 earnings per share. The company's revenue for the quarter was up 8.6% compared to the same quarter last year. As a group, research analysts expect that ResMed Inc. will post 12.03 earnings per share for the current year.

ResMed Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be paid a dividend of $0.66 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from ResMed's previous quarterly dividend of $0.60. ResMed's dividend payout ratio is 23.01%.

Insider Activity

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the completion of the sale, the chief executive officer directly owned 466,256 shares in the company, valued at $95,904,196.64. This trade 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. Also, Director Peter C. Farrell sold 8,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director owned 52,773 shares of the company's stock, valued at $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. Insiders have sold a total of 22,973 shares of company stock valued at $4,885,436 in the last ninety days. 0.65% of the stock is currently owned by insiders.

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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