AlphaQuest LLC Sells 8,469 Shares of ResMed Inc. $RMD

Key Points

• AlphaQuest LLC cut its ResMed stake sharply in the fourth quarter, selling 8,469 shares and reducing its position by 55.1% to 6,894 shares worth about $1.66 million.
• ResMed’s insiders have also been selling, including CEO Michael J. Farrell and Director Peter C. Farrell, with insiders selling 18,973 shares worth $4.39 million over the last three months.
• ResMed beat quarterly expectations, reporting $2.86 EPS on $1.43 billion in revenue, while analysts currently rate the stock a “Moderate Buy” with a consensus price target of $286.18.

AlphaQuest LLC decreased its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 55.1% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 6,894 shares of the medical equipment provider's stock after selling 8,469 shares during the period. AlphaQuest LLC's holdings in ResMed were worth $1,661,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in RMD. Landscape Capital Management L.L.C. grew its holdings in shares of 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 purchasing an additional 27,060 shares in the last quarter. Nordea Investment Management AB grew its holdings in shares of 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 purchasing an additional 294,124 shares in the last quarter. WCM Investment Management LLC acquired a new stake in shares of ResMed during the 3rd quarter worth $3,110,000. Russell Investments Group Ltd. grew its holdings in shares of ResMed by 20.2% during the 3rd 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 in the last quarter. Finally, Allianz Asset Management GmbH grew its holdings in shares of ResMed by 44.8% during the 3rd 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 in the last quarter. Institutional investors own 54.98% of the company's stock.

Insider Transactions at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $207.82, for a total transaction of $1,037,229.62. Following the sale, the chief executive officer directly owned 466,223 shares of the company's stock, valued at approximately $96,890,463.86. This trade represents a 1.06% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of ResMed stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total value of $450,000.00. The SEC filing for this sale provides additional information. Insiders have sold 18,973 shares of company stock worth $4,386,031 over the last three months. Insiders own 0.65% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Wells Fargo & Company reduced their target price on ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. Robert W. Baird set a $225.00 target price on ResMed in a report on Friday, May 1st. Weiss Ratings lowered ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 22nd. Wall Street Zen lowered ResMed from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Finally, Evercore set a $255.00 price objective on ResMed and gave the company an "outperform" rating in a research note on Monday, April 13th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $286.18.

ResMed Stock Performance

NYSE:RMD opened at $206.24 on Thursday. The stock's 50-day simple moving average is $218.28 and its 200 day simple moving average is $240.03. The firm has a market capitalization of $29.92 billion, a PE ratio of 19.89, a price-to-earnings-growth ratio of 1.33 and a beta of 0.84. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. ResMed Inc. has a twelve month low of $198.61 and a twelve month high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last released 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 for 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 last year, the firm posted $2.37 earnings per share. On average, analysts anticipate that ResMed Inc. will post 11.13 EPS for the current fiscal year.

ResMed Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, May 14th. ResMed's dividend payout ratio (DPR) is presently 23.14%.

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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