Hsbc Holdings PLC Boosts Stake in ResMed Inc. $RMD

Hsbc Holdings PLC grew its holdings in ResMed Inc. (NYSE:RMD) by 0.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 267,485 shares of the medical equipment provider’s stock after purchasing an additional 2,318 shares during the period. Hsbc Holdings PLC owned approximately 0.18% of ResMed worth $68,932,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently modified their holdings of RMD. Zions Bancorporation National Association UT purchased a new stake in ResMed in the 1st quarter valued at about $45,000. Groupe la Francaise acquired a new stake in shares of ResMed during the first quarter valued at about $45,000. Harbour Investments Inc. raised its stake in shares of ResMed by 264.2% in the 2nd quarter. Harbour Investments Inc. now owns 244 shares of the medical equipment provider’s stock valued at $63,000 after acquiring an additional 177 shares during the period. Quarry LP lifted its holdings in shares of ResMed by 141.1% in the 1st quarter. Quarry LP now owns 311 shares of the medical equipment provider’s stock worth $70,000 after acquiring an additional 182 shares during the last quarter. Finally, Ameritas Advisory Services LLC purchased a new position in shares of ResMed during the 2nd quarter worth approximately $83,000. 54.98% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other ResMed news, CEO Michael J. Farrell sold 8,011 shares of the business’s stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $249.75, for a total transaction of $2,000,747.25. Following the completion of the transaction, the chief executive officer owned 467,866 shares in the company, valued at $116,849,533.50. The trade was a 1.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $252.05, for a total transaction of $504,100.00. Following the completion of the sale, the director directly owned 66,110 shares in the company, valued at approximately $16,663,025.50. This represents a 2.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 20,662 shares of company stock worth $5,443,526 over the last three months. Insiders own 0.65% of the company’s stock.

ResMed Trading Down 0.7%

RMD opened at $253.30 on Friday. The business has a fifty day moving average price of $261.55 and a 200 day moving average price of $263.52. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53. ResMed Inc. has a 12 month low of $199.92 and a 12 month high of $293.81. The stock has a market capitalization of $36.97 billion, a price-to-earnings ratio of 26.64, a PEG ratio of 1.75 and a beta of 0.87.

ResMed (NYSE:RMD) last announced its quarterly earnings data on Friday, October 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.49 by $0.06. ResMed had a return on equity of 25.62% and a net margin of 27.22%.The business had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same quarter last year, the business posted $2.20 EPS. The business’s quarterly revenue was up 9.1% compared to the same quarter last year. Sell-side analysts expect that ResMed Inc. will post 9.47 earnings per share for the current fiscal year.

ResMed Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 18th. Investors of record on Thursday, November 13th will be paid a $0.60 dividend. The ex-dividend date is Thursday, November 13th. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. ResMed’s payout ratio is currently 24.56%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on RMD. CLSA raised ResMed from a “hold” rating to an “outperform” rating in a research report on Tuesday, September 2nd. Citigroup began coverage on ResMed in a research note on Thursday, September 18th. They issued a “buy” rating and a $330.00 price objective for the company. Wall Street Zen lowered ResMed from a “buy” rating to a “hold” rating in a research note on Sunday, August 10th. KeyCorp raised their target price on ResMed from $298.00 to $299.00 and gave the company an “overweight” rating in a report on Friday, October 31st. Finally, Morgan Stanley set a $305.00 target price on ResMed in a research report on Friday, October 31st. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $297.45.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.