Cullen Frost Bankers Inc. Raises Stake in ResMed Inc. $RMD

Cullen Frost Bankers Inc. grew its stake in shares of ResMed Inc. (NYSE:RMD) by 34.3% during the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 575 shares of the medical equipment provider’s stock after purchasing an additional 147 shares during the period. Cullen Frost Bankers Inc.’s holdings in ResMed were worth $148,000 at the end of the most recent reporting period.

Other institutional investors also recently made changes to their positions in the company. Golden State Wealth Management LLC boosted its position in shares of ResMed by 384.8% in the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider’s stock worth $36,000 after buying an additional 127 shares in the last quarter. Zions Bancorporation National Association UT purchased a new stake in shares of ResMed in the 1st quarter worth about $45,000. Groupe la Francaise purchased a new stake in shares of ResMed in the 1st quarter worth about $45,000. Harbour Investments Inc. boosted its position 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 worth $63,000 after buying an additional 177 shares in the last quarter. Finally, Larson Financial Group LLC boosted its position in shares of ResMed by 926.7% in the 1st quarter. Larson Financial Group LLC now owns 308 shares of the medical equipment provider’s stock worth $69,000 after buying an additional 278 shares in the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Stock Down 2.0%

RMD opened at $259.87 on Friday. The firm has a 50 day moving average price of $275.26 and a 200 day moving average price of $259.39. The company has a market cap of $37.93 billion, a PE ratio of 27.33, a price-to-earnings-growth ratio of 1.79 and a beta of 0.83. ResMed Inc. has a 1 year low of $199.92 and a 1 year high of $293.81. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44.

ResMed (NYSE:RMD) last posted its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.47 by $0.08. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company’s revenue was up 10.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.08 EPS. Sell-side analysts expect that ResMed Inc. will post 9.47 earnings per share for the current year.

ResMed Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 18th. Investors of record on Thursday, August 14th were given a dividend of $0.60 per share. This is a boost from ResMed’s previous quarterly dividend of $0.53. The ex-dividend date of this dividend was Thursday, August 14th. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. ResMed’s dividend payout ratio is currently 25.24%.

Insider Buying and Selling

In related news, Director John Hernandez sold 2,575 shares of the stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $287.10, for a total transaction of $739,282.50. Following the completion of the sale, the director owned 4,045 shares of the company’s stock, valued at approximately $1,161,319.50. This represents a 38.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction that occurred on Tuesday, October 7th. The stock was sold at an average price of $282.85, for a total transaction of $2,265,345.65. Following the sale, the chief executive officer directly owned 467,792 shares of the company’s stock, valued at approximately $132,314,967.20. This trade represents a 1.68% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 18,743 shares of company stock valued at $5,284,514. 0.65% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Piper Sandler boosted their price objective on shares of ResMed from $248.00 to $270.00 and gave the stock a “neutral” rating in a research report on Friday, August 1st. Mizuho upped their target price on shares of ResMed from $270.00 to $290.00 and gave the company an “outperform” rating in a report on Friday, August 1st. Stifel Nicolaus upped their target price on shares of ResMed from $240.00 to $270.00 and gave the company a “hold” rating in a report on Friday, August 1st. CLSA upgraded shares of ResMed from a “hold” rating to an “outperform” rating in a report on Tuesday, September 2nd. Finally, UBS Group upgraded shares of ResMed to a “strong-buy” rating in a report on Tuesday, September 16th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $295.70.

ResMed 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.