Hsbc Holdings PLC Buys New Stake in ResMed Inc. $RMD

Hsbc Holdings PLC bought a new stake in ResMed Inc. (NYSE:RMD) in the 2nd quarter, HoldingsChannel reports. The fund bought 355,518 shares of the medical equipment provider’s stock, valued at approximately $69,292,000.

Several other institutional investors also recently bought and sold shares of RMD. Jones Financial Companies Lllp boosted its position in shares of ResMed by 52.6% in the 1st quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider’s stock worth $645,000 after purchasing an additional 994 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new position in ResMed during the 2nd quarter valued at about $389,000. Brown Advisory Inc. increased its position in ResMed by 17.8% during the 2nd quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider’s stock valued at $409,000 after buying an additional 240 shares in the last quarter. Cresset Asset Management LLC purchased a new stake in ResMed in the second quarter valued at about $206,000. Finally, Alliancebernstein L.P. raised its stake in ResMed by 24.2% in the second quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider’s stock valued at $73,808,000 after buying an additional 55,790 shares during the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Stock Performance

RMD opened at $235.73 on Thursday. The firm has a fifty day moving average price of $209.84 and a 200 day moving average price of $219.29. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $285.08. The stock has a market cap of $34.00 billion, a P/E ratio of 22.60, a P/E/G ratio of 1.48 and a beta of 0.76. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42.

ResMed (NYSE:RMD) last released its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, beating the consensus estimate of $2.89 by $0.06. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The company had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the business earned $2.55 earnings per share. The firm’s revenue was up 8.6% on a year-over-year basis. Equities research analysts anticipate that ResMed Inc. will post 12.03 earnings per share for the current year.

ResMed Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.66 per share. This is a boost from ResMed’s previous quarterly dividend of $0.60. The ex-dividend date is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.1%. ResMed’s payout ratio is 25.31%.

Wall Street Analyst Weigh In

Several brokerages have weighed in on RMD. Morgan Stanley reissued an “equal weight” rating and issued a $230.00 price target (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. Robert W. Baird set a $213.00 price objective on shares of ResMed in a research report on Friday, August 7th. Weiss Ratings raised shares of ResMed from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Citigroup reiterated a “neutral” rating and issued a $235.00 target price (down from $270.00) on shares of ResMed in a research note on Sunday, July 12th. Finally, KeyCorp dropped their target price on shares of ResMed from $260.00 to $255.00 and set an “overweight” rating on the stock in a research report on Friday, August 7th. Seven analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $239.38.

Insider Transactions at ResMed

In related news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction dated 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 owned 466,256 shares in the company, valued at $95,904,196.64. The trade was a 1.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total value of $1,800,000.00. Following the completion of the transaction, the director directly owned 52,773 shares of the company’s stock, valued at $11,873,925. The trade was a 13.16% 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 22,973 shares of company stock worth $4,885,436 over the last 90 days. Insiders own 0.65% of the company’s stock.

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.