American Century Companies Inc. Purchases 13,349 Shares of ResMed Inc. $RMD

Key Points

• American Century Companies Inc. increased its stake in ResMed Inc. by 8.3%, acquiring an additional 13,349 shares, bringing its total ownership to 174,718 shares valued at approximately $39.1 million.
• ResMed announced a quarterly dividend of $0.60 per share, an increase from its previous dividend of $0.53, with a dividend yield of 0.8%.
• Analysts have mixed outlooks on ResMed, with recent ratings changes including a downgrade to "hold" from Wall Street Zen and upgrades to "strong-buy" from William Blair, reflecting a consensus rating of "Moderate Buy."

American Century Companies Inc. grew its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 8.3% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 174,718 shares of the medical equipment provider's stock after buying an additional 13,349 shares during the period. American Century Companies Inc. owned 0.12% of ResMed worth $39,111,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Ballentine Partners LLC increased its stake in ResMed by 6.3% during the 1st quarter. Ballentine Partners LLC now owns 1,782 shares of the medical equipment provider's stock worth $399,000 after acquiring an additional 105 shares during the period. Golden State Wealth Management LLC grew its position in ResMed by 384.8% during the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock worth $36,000 after acquiring an additional 127 shares during the last quarter. Exchange Traded Concepts LLC increased its stake in shares of ResMed by 393.0% in the first quarter. Exchange Traded Concepts LLC now owns 2,529 shares of the medical equipment provider's stock valued at $566,000 after buying an additional 2,016 shares during the period. MML Investors Services LLC increased its position in ResMed by 31.9% in the 4th quarter. MML Investors Services LLC now owns 11,468 shares of the medical equipment provider's stock valued at $2,623,000 after acquiring an additional 2,771 shares during the period. Finally, Private Advisor Group LLC increased its holdings in ResMed by 18.3% in the first quarter. Private Advisor Group LLC now owns 3,244 shares of the medical equipment provider's stock valued at $726,000 after purchasing an additional 501 shares during the period. Institutional investors own 54.98% of the company's stock.

Insider Buying and Selling at ResMed

In related news, Director Peter C. Farrell sold 945 shares of ResMed stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $255.49, for a total transaction of $241,438.05. Following the sale, the director directly owned 68,273 shares in the company, valued at $17,443,068.77. The trade was a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the company's 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 completion of the sale, the chief executive officer owned 455,503 shares in the company, valued at approximately $127,303,978.44. This trade represents a 1.73% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 27,638 shares of company stock valued at $7,311,177. 0.71% of the stock is currently owned by corporate insiders.

ResMed Price Performance

RMD stock opened at $289.0290 on Thursday. The stock has a market cap of $42.32 billion, a PE ratio of 30.39, a P/E/G ratio of 1.92 and a beta of 0.77. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53. ResMed Inc. has a one year low of $199.92 and a one year high of $293.08. The firm has a 50 day simple moving average of $266.30 and a two-hundred day simple moving average of $243.84.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping the consensus estimate of $2.47 by $0.08. The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The business's revenue was up 10.2% compared to the same quarter last year. During the same period last year, the firm posted $2.08 earnings per share. On average, analysts predict that ResMed Inc. will post 9.47 EPS for the current fiscal year.

ResMed Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 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 0.8%. The ex-dividend date of this dividend is Wednesday, August 13th. This is a positive change from ResMed's previous quarterly dividend of $0.53. ResMed's payout ratio is presently 25.24%.

Analyst Ratings Changes

RMD has been the topic of a number of recent analyst reports. Wall Street Zen downgraded ResMed from a "buy" rating to a "hold" rating in a research note on Sunday, August 10th. William Blair upgraded shares of ResMed to a "strong-buy" rating in a report on Friday, August 1st. UBS Group upped their price target on ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a report on Friday, August 1st. JPMorgan Chase & Co. increased their price objective on shares of ResMed from $286.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, April 24th. Finally, KeyCorp lifted their target price on ResMed from $274.00 to $298.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Two 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 given a Sell rating to the company's stock. Based on data from MarketBeat, ResMed currently has a consensus rating of "Moderate Buy" and a consensus price target of $274.83.

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.

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