1248 Management LLC Lowers Position in ResMed Inc. $RMD

Key Points

• 1248 Management LLC reduced its stake in ResMed Inc. by 33.5% during the first quarter, owning a total of 3,118 shares valued at $698,000 after selling 1,569 shares.
• Several institutional investors made significant changes to their holdings, with Global X Japan Co. Ltd. increasing its stake in ResMed by 121.4% in the same quarter.
• ResMed's quarterly earnings beat estimates, reporting $2.55 EPS and revenue of $1.35 billion, while also announcing an increased quarterly dividend of $0.60 per share.

1248 Management LLC reduced its stake in shares of ResMed Inc. (NYSE:RMD - Free Report) by 33.5% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 3,118 shares of the medical equipment provider's stock after selling 1,569 shares during the period. 1248 Management LLC's holdings in ResMed were worth $698,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in ResMed by 1.8% during the 1st quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider's stock worth $4,139,815,000 after purchasing an additional 320,240 shares in the last quarter. Northern Trust Corp increased its holdings in ResMed by 2.5% during the 1st quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider's stock worth $390,516,000 after purchasing an additional 41,951 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in ResMed by 4.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider's stock worth $223,431,000 after purchasing an additional 41,108 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of ResMed by 28.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 954,612 shares of the medical equipment provider's stock worth $218,310,000 after buying an additional 212,201 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in shares of ResMed by 6.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 793,760 shares of the medical equipment provider's stock worth $177,652,000 after buying an additional 51,348 shares during the last quarter. 54.98% of the stock is owned by institutional investors.

ResMed Price Performance

Shares of ResMed stock traded down $2.18 during trading on Wednesday, hitting $268.81. The stock had a trading volume of 1,804,367 shares, compared to its average volume of 936,194. The firm has a market cap of $39.36 billion, a price-to-earnings ratio of 28.27, a P/E/G ratio of 1.83 and a beta of 0.85. The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. ResMed Inc. has a 12 month low of $199.92 and a 12 month high of $293.81. The business's 50-day moving average is $271.75 and its 200 day moving average is $246.71.

ResMed (NYSE:RMD - Get Free Report) last released its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating analysts' consensus estimates of $2.47 by $0.08. The business had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.33 billion. ResMed had a return on equity of 25.62% and a net margin of 27.22%.The firm's revenue was up 10.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.08 earnings per share. As a group, sell-side analysts anticipate that ResMed Inc. will post 9.47 earnings per share for the current year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th will be given a dividend of $0.60 per share. The ex-dividend date is Thursday, August 14th. This is a positive change from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a yield of 0.9%. ResMed's dividend payout ratio (DPR) is currently 25.24%.

Insider Buying and Selling at ResMed

In other ResMed news, Director Peter C. Farrell sold 945 shares of the company's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total transaction of $241,438.05. Following the completion of the sale, the director directly owned 68,273 shares in the company, valued at $17,443,068.77. This represents a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction dated 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 sale, the chief executive officer owned 455,503 shares of the company's stock, valued at approximately $127,303,978.44. This represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 27,597 shares of company stock worth $7,301,182 over the last three months. Company insiders own 0.71% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on RMD. Royal Bank Of Canada boosted their target price on ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Wall Street Zen downgraded ResMed from a "buy" rating to a "hold" rating in a research note on Sunday, August 10th. William Blair upgraded ResMed to a "strong-buy" rating in a research note on Friday, August 1st. CLSA upgraded ResMed from a "hold" rating to an "outperform" rating in a research note on Tuesday. Finally, Mizuho upped their price objective on ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target 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.