Element Capital Management LLC Makes New $2.75 Million Investment in ResMed Inc. $RMD

Key Points

• Element Capital Management LLC acquired 12,295 shares of ResMed Inc. (NYSE:RMD) worth approximately $2.75 million during the first quarter, reflecting ongoing interest from institutional investors.
• ResMed announced an increase in its quarterly dividend from $0.53 to $0.60 per share, with the next payment scheduled for September 18th.
• The company's stock recently saw a 1.3% decline and has a current market capitalization of $41.66 billion, alongside a recent earnings report that exceeded analysts' estimates.

Element Capital Management LLC purchased a new position in ResMed Inc. (NYSE:RMD - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 12,295 shares of the medical equipment provider's stock, valued at approximately $2,752,000.

Other institutional investors also recently added to or reduced their stakes in the company. Global X Japan Co. Ltd. lifted its stake in ResMed by 121.4% in the first quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock worth $28,000 after acquiring an additional 68 shares during the last quarter. Colonial Trust Co SC lifted its stake in ResMed by 6,250.0% during the fourth quarter. Colonial Trust Co SC now owns 127 shares of the medical equipment provider's stock worth $29,000 after purchasing an additional 125 shares during the last quarter. Optiver Holding B.V. purchased a new stake in ResMed during the fourth quarter worth approximately $33,000. Golden State Wealth Management LLC boosted its holdings in ResMed by 384.8% in the first quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock valued at $36,000 after purchasing an additional 127 shares in the last quarter. Finally, Itau Unibanco Holding S.A. boosted its holdings in ResMed by 1,000.0% in the fourth quarter. Itau Unibanco Holding S.A. now owns 165 shares of the medical equipment provider's stock valued at $38,000 after purchasing an additional 150 shares in the last quarter. Hedge funds and other institutional investors own 54.98% of the company's stock.

Insider Buying and Selling

In other news, CEO Michael J. Farrell sold 8,009 shares of the company's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total transaction of $2,238,355.32. Following the completion of the sale, the chief executive officer owned 455,503 shares in the company, valued at $127,303,978.44. This represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Peter C. Farrell sold 945 shares of the company's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $255.49, for a total value of $241,438.05. Following the sale, the director owned 68,273 shares of the company's stock, valued at $17,443,068.77. This trade represents a 1.37% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 27,638 shares of company stock worth $7,311,177 in the last 90 days. Company insiders own 0.71% of the company's stock.

ResMed Stock Performance

NYSE:RMD traded up $2.9890 during trading hours on Wednesday, reaching $289.0290. 812,492 shares of the company's stock were exchanged, compared to its average volume of 1,154,322. The firm has a market capitalization of $42.32 billion, a price-to-earnings ratio of 30.39, a P/E/G ratio of 1.92 and a beta of 0.77. The company has a 50-day moving average of $266.30 and a 200 day moving average of $243.84. The company has a quick ratio of 2.53, a current ratio of 3.44 and a debt-to-equity ratio of 0.11. ResMed Inc. has a 1-year low of $199.92 and a 1-year high of $293.08.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share 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 analysts' expectations of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. ResMed's quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.08 EPS. Research analysts anticipate that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, August 14th will be paid a dividend of $0.60 per share. The ex-dividend date is Wednesday, August 13th. This represents a $2.40 dividend on an annualized basis and a yield of 0.8%. This is an increase from ResMed's previous quarterly dividend of $0.53. ResMed's dividend payout ratio (DPR) is currently 25.24%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on RMD. Morgan Stanley set a $286.00 price target on ResMed and gave the company an "overweight" rating in a report on Tuesday, May 20th. KeyCorp boosted their price objective on shares of ResMed from $274.00 to $298.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Stifel Nicolaus boosted their price objective on shares of ResMed from $240.00 to $270.00 and gave the stock a "hold" rating in a research report on Friday, August 1st. JPMorgan Chase & Co. boosted their price objective on shares of ResMed from $286.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, April 24th. Finally, Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a research report on Sunday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, ResMed presently has an average rating of "Moderate Buy" and an average target price of $274.83.

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.