ABC Arbitrage SA Invests $352,000 in ResMed Inc. (NYSE:RMD)

Key Points

• ABC Arbitrage SA has invested approximately $352,000 in ResMed Inc., acquiring 1,571 shares during the first quarter, as detailed in their recent 13F filing.
• ResMed has raised its quarterly dividend from $0.53 to $0.60 per share, with the payment date set for September 18th.
• Research firms have recently upgraded ResMed's stock ratings, with multiple analysts raising their price targets, reflecting an overall consensus rating of "Moderate Buy."

ABC Arbitrage SA purchased a new stake in ResMed Inc. (NYSE:RMD - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 1,571 shares of the medical equipment provider's stock, valued at approximately $352,000.

Other large investors also recently added to or reduced their stakes in the company. Ballentine Partners LLC grew its position in ResMed by 6.3% during the first quarter. Ballentine Partners LLC now owns 1,782 shares of the medical equipment provider's stock valued at $399,000 after purchasing an additional 105 shares in the last quarter. Golden State Wealth Management LLC grew its stake 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 valued at $36,000 after buying an additional 127 shares in the last quarter. Exchange Traded Concepts LLC increased its stake in shares of ResMed by 393.0% during the 1st quarter. Exchange Traded Concepts LLC now owns 2,529 shares of the medical equipment provider's stock worth $566,000 after purchasing an additional 2,016 shares during the last quarter. MML Investors Services LLC raised its holdings in ResMed by 31.9% during the fourth quarter. MML Investors Services LLC now owns 11,468 shares of the medical equipment provider's stock valued at $2,623,000 after buying an additional 2,771 shares in the last quarter. Finally, Private Advisor Group LLC boosted its stake in shares of ResMed by 18.3% during the 1st quarter. Private Advisor Group LLC now owns 3,244 shares of the medical equipment provider's stock worth $726,000 after acquiring an additional 501 shares in the last quarter. 54.98% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Peter C. Farrell sold 945 shares of the business's stock in a transaction on Wednesday, July 2nd. The shares were 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. The trade was a 1.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Michael J. Farrell sold 8,009 shares of the business's stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $256.72, for a total transaction of $2,056,070.48. Following the sale, the chief executive officer directly owned 455,503 shares in the company, valued at $116,936,730.16. This trade represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 19,054 shares of company stock worth $4,820,479 over the last ninety days. Company insiders own 0.71% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on RMD shares. KeyCorp boosted their target price 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. Royal Bank Of Canada upped their price target on ResMed from $294.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, August 1st. JPMorgan Chase & Co. lifted their price target on shares of ResMed from $286.00 to $290.00 and gave the stock an "overweight" rating in a research note on Thursday, April 24th. Stifel Nicolaus upped their price objective on ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a research note on Friday, August 1st. Finally, Piper Sandler boosted their target price on shares of ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. One analyst has rated the stock with a sell rating, three have given a hold rating, eleven have given a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $274.83.

ResMed Trading Up 1.5%

ResMed stock traded up $4.06 during mid-day trading on Friday, hitting $284.23. The stock had a trading volume of 827,364 shares, compared to its average volume of 1,149,579. ResMed Inc. has a 12 month low of $199.92 and a 12 month high of $293.08. The stock has a 50-day simple moving average of $260.52 and a two-hundred day simple moving average of $241.85. The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $41.68 billion, a PE ratio of 29.89, a P/E/G ratio of 1.88 and a beta of 0.77.

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

ResMed Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, August 14th will be issued a dividend of $0.60 per share. The ex-dividend date is Wednesday, August 13th. This is a positive change from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.8%. ResMed's dividend payout ratio (DPR) is 22.29%.

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.