ResMed Inc. Faces Small Ownership Decrease and Earnings Shortfall, but Analysts Remain Optimistic for Future Growth

ResMed Inc. (NYSE:RMD), a leading medical equipment provider, has experienced a slight decrease in its position held by the State Board of Administration of Florida Retirement System. According to the board’s most recent filing with the Securities and Exchange Commission (SEC), it lowered its position by 1.7% in the first quarter. The institutional investor sold 2,920 shares, leaving it with 171,632 shares of ResMed stock. As of the filing, this stake was valued at $37,586,000, representing 0.12% ownership of ResMed.

On September 15, 2023, it is worth noting ResMed’s latest quarterly earnings report from August 3rd. For the quarter ending in August, ResMed reported earnings per share (EPS) of $1.60; however, this fell short of analysts’ consensus estimate of $1.67 by $0.07 per share. Moreover, while ResMed recorded strong revenue figures at $1.12 billion for the quarter, it slightly missed expectations that were set at $1.14 billion by equity analysts.

Unfazed by these minor variances between estimates and actual results for the recent quarter, equities analysts believe that ResMed will continue to demonstrate positive growth in terms of earnings per share for the year as a whole. They currently forecast that ResMed will achieve EPS of approximately $7.08 for the current fiscal year.

In light of these financial developments, various equities research analysts have offered their insights on ResMed stock (NYSE:RMD). UBS Group downgraded their rating on RMD shares from “buy” to “neutral” in a report released on September 5th – an action that may indicate less optimism about its potential future performance compared to previous assessments.

Meanwhile, StockNews.com initiated coverage on ResMed with a “hold” rating on August 17th. Conversely, Needham & Company LLC upgraded ResMed from a “hold” rating to a “buy” rating in their research report on September 6th. Royal Bank of Canada, although reducing the price target from $284.00 to $273.00, still maintains an “outperform” rating for the company as of August 14th. KeyCorp also slashed its target price but labeled ResMed stock as “overweight” in a research report issued on August 4th.

In summary, despite experiencing a slight reduction in ownership by the State Board of Administration of Florida Retirement System and falling slightly short of earnings estimates for the recent quarter, ResMed Inc. (NYSE:RMD) is expected to rebound over the course of this fiscal year and continue to grow its earnings per share. It is worth noting that analysts have generally supported ResMed’s performance and prospects with positive ratings and overall optimism about its future potential.

ResMed Inc. Sees Changes in Institutional Investors, Stock Performance, and Recommendations

ResMed Inc., a leading medical equipment provider, has seen changes in the positions of several institutional investors in recent months. Ascent Group LLC raised its holdings in ResMed by 2.3% during the third quarter, acquiring an additional 45 shares and bringing their total holdings to 1,995 shares worth $446,000. Ossiam also increased its holdings in ResMed by 2.4% during the first quarter, adding an additional 45 shares to reach a total of 1,919 shares valued at $420,000. SeaCrest Wealth Management LLC raised its holdings by 3.6% in the fourth quarter, acquiring an additional 48 shares and now owns a total of 1,400 shares valued at $291,000.

Siemens Fonds Invest GmbH also increased its holdings by 2.9% during the fourth quarter, purchasing an additional 52 shares and now holding a total of 1,833 shares valued at $382,000. Lastly, Raymond James Trust N.A. raised its holdings by 4.0% during the first quarter and acquired an additional 54 shares, bringing their total to 1,421 shares worth $311,000. These institutional investors collectively own around 63.79% of ResMed’s stock.

As for ResMed’s stock performance on September 15th, it opened at $147.58. The company has experienced fluctuations over time as indicated by its fifty-two week low of $146.05 and fifty-two week high of $243.52. Currently having a market capitalization of $21.70 billion with a PE ratio of 24.19 and P/E/G ratio of 2.25; however, it is noteworthy that ResMed’s beta is relatively low at 0.52.

Analysts have provided varying opinions on RMD’s stock with UBS Group downgrading it from a “buy” rating to a “neutral” rating on September 5th. StockNews.com initiated coverage of ResMed on August 17th, giving it a “hold” rating. Needham & Company LLC upgraded ResMed from a “hold” to a “buy” in their research report on September 6th. Royal Bank of Canada lowered its price target from $284.00 to $273.00 and maintained an “outperform” rating on August 14th, while KeyCorp reduced its target price from $280.00 to $260.00 and also issued an “overweight” rating for the company on August 4th.

ResMed has recently announced a quarterly dividend which is set to be paid on September 21st. The dividend per share will be $0.48 for stockholders of record as of August 17th, representing an increase from the previous quarterly dividend of $0.44 per share. The annualized dividend amounts to $1.92 with a yield of 1.30%. The ex-dividend date for this payment was August 16th.

In terms of insider trading activity, there have been notable transactions by COO Robert Andrew Douglas and insider Kaushik Ghoshal. Douglas sold 1,500 shares at an average price of $222.22, resulting in a total value of $333,330. Following this transaction, Douglas now holds 252,026 shares valued at approximately $56,005,217.72.

Additionally, Ghoshal sold 500 shares at an average price of $220.00 for a total value of $110,000. After this sale, Ghoshal retains ownership of 11,787 shares valued at $2,593,140.

Overall, insiders have sold a total of 14,900 shares during the last quarter with an estimated worth of $3,021,246. Corporate insiders currently own 1.39% of ResMed’s stock.

In conclusion, ResMed Inc. has experienced varied interest from institutional investors, fluctuations in stock value, and mixed recommendations from analysts. The company has recently declared an increased dividend for its shareholders. Noteworthy insider trading activities have also been observed. Investors may consider these factors when making decisions regarding their investments in ResMed Inc.