AdvisorShares Investments LLC Takes Position in ResMed Inc. $RMD

Key Points

• AdvisorShares Investments opened a new position in ResMed during the fourth quarter, buying 29,672 shares valued at about $7.15 million. The stake makes ResMed 1.2% of the fund’s portfolio and its 27th-largest holding.
• ResMed reported better-than-expected quarterly results, with EPS of $2.86 versus $2.79 expected and revenue of $1.43 billion versus $1.42 billion estimated. Revenue also rose 10.8% year over year.
• The company announced a quarterly dividend of $0.60 per share, payable June 18, implying an annualized dividend of $2.40 and a yield of 1.3%. Meanwhile, insiders, including CEO Michael J. Farrell, have recently sold shares, and analysts currently rate the stock a Moderate Buy with a consensus target of $286.18.

AdvisorShares Investments LLC acquired a new stake in ResMed Inc. (NYSE:RMD - Free Report) during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 29,672 shares of the medical equipment provider's stock, valued at approximately $7,147,000. ResMed accounts for 1.2% of AdvisorShares Investments LLC's investment portfolio, making the stock its 27th biggest holding.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Landscape Capital Management L.L.C. raised its stake in ResMed by 123.2% during the 3rd quarter. Landscape Capital Management L.L.C. now owns 49,017 shares of the medical equipment provider's stock worth $13,417,000 after buying an additional 27,060 shares during the period. Nordea Investment Management AB raised its stake in ResMed by 37.2% during the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock worth $262,027,000 after buying an additional 294,124 shares during the period. WCM Investment Management LLC purchased a new stake in shares of ResMed in the third quarter worth approximately $3,110,000. Russell Investments Group Ltd. raised its stake in shares of ResMed by 20.2% in the third quarter. Russell Investments Group Ltd. now owns 112,755 shares of the medical equipment provider's stock worth $30,847,000 after purchasing an additional 18,966 shares during the last quarter. Finally, Allianz Asset Management GmbH raised its stake in shares of ResMed by 44.8% in the third quarter. Allianz Asset Management GmbH now owns 357,421 shares of the medical equipment provider's stock worth $97,837,000 after purchasing an additional 110,647 shares during the last quarter. 54.98% of the stock is owned by institutional investors and hedge funds.

ResMed Price Performance

Shares of NYSE RMD opened at $190.58 on Friday. The stock has a fifty day simple moving average of $216.93 and a two-hundred day simple moving average of $239.34. ResMed Inc. has a 1-year low of $190.38 and a 1-year high of $293.81. The firm has a market cap of $27.64 billion, a price-to-earnings ratio of 18.38, a price-to-earnings-growth ratio of 1.30 and a beta of 0.84. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.79 by $0.07. The business had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.42 billion. ResMed had a return on equity of 25.35% and a net margin of 27.44%.ResMed's revenue was up 10.8% compared to the same quarter last year. During the same period in the prior year, the company earned $2.37 earnings per share. Analysts anticipate that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th will be given a dividend of $0.60 per share. The ex-dividend date is Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.3%. ResMed's dividend payout ratio is currently 23.14%.

Insider Buying and Selling at ResMed

In related news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total value of $450,000.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $207.82, for a total value of $1,037,229.62. Following the completion of the sale, the chief executive officer owned 466,223 shares in the company, valued at $96,890,463.86. This trade represents a 1.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 18,973 shares of company stock worth $4,386,031. Company insiders own 0.65% of the company's stock.

Analyst Ratings Changes

Several analysts have recently commented on the company. Weiss Ratings downgraded ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 22nd. Citigroup lowered their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating for the company in a research note on Thursday, April 9th. JPMorgan Chase & Co. started coverage on ResMed in a research note on Wednesday, April 15th. They issued an "overweight" rating for the company. Robert W. Baird set a $225.00 target price on ResMed in a report on Friday, May 1st. Finally, Wall Street Zen lowered ResMed from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $286.18.

ResMed Company Profile

ResMed NYSE: RMD is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed's product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.

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