Amundi Trims Holdings in ResMed Inc. $RMD

Key Points

• Amundi cut its ResMed stake by 43.1% in the second quarter, selling 457,880 shares and retaining 604,304 shares worth approximately $117.8 million. Institutional investors collectively own 54.98% of the company.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 in EPS on $1.46 billion in revenue, with revenue up 8.6% year over year. The company also raised its quarterly dividend from $0.60 to $0.66 per share.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $240.31; several brokerages recently lowered their targets. Company insiders also sold shares under pre-arranged trading plans.

Amundi reduced its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 43.1% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 604,304 shares of the medical equipment provider's stock after selling 457,880 shares during the period. Amundi owned 0.42% of ResMed worth $117,767,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of RMD. California State Teachers Retirement System raised its holdings in ResMed by 19,648.1% in the 2nd quarter. California State Teachers Retirement System now owns 43,963,369 shares of the medical equipment provider's stock valued at $8,567,581,000 after acquiring an additional 43,740,748 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of ResMed during the second quarter worth $2,400,375,000. State Street Corp grew its position in shares of ResMed by 1.2% in the fourth quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider's stock valued at $1,595,862,000 after purchasing an additional 76,244 shares during the period. Bank of New York Mellon Corp grew its position in shares of ResMed by 0.7% in the first quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider's stock valued at $1,105,651,000 after purchasing an additional 34,732 shares during the period. Finally, Geode Capital Management LLC increased its stake in ResMed by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider's stock valued at $1,032,877,000 after purchasing an additional 51,218 shares during the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Price Performance

RMD stock opened at $220.04 on Thursday. The company has a market cap of $31.74 billion, a PE ratio of 21.10, a price-to-earnings-growth ratio of 1.40 and a beta of 0.77. The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06. The stock has a 50-day moving average price of $217.00 and a two-hundred day moving average price of $217.27. ResMed Inc. has a 12-month low of $180.26 and a 12-month high of $284.87.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.06. The business had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The company's revenue was up 8.6% compared to the same quarter last year. During the same period in the previous year, the company posted $2.55 EPS. As a group, research analysts predict that ResMed Inc. will post 12.02 EPS for the current year.

ResMed Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be paid a $0.66 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from ResMed's previous quarterly dividend of $0.60. ResMed's payout ratio is 25.31%.

Insiders Place Their Bets

In related news, Director Peter Farrell sold 8,000 shares of ResMed stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the transaction, the director owned 52,773 shares in the company, valued at approximately $11,873,925. The trade was a 13.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Farrell sold 4,991 shares of the company's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the sale, the chief executive officer directly owned 466,223 shares of the company's stock, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their ownership of the stock. 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 three months, insiders sold 18,952 shares of company stock worth $4,145,070. Insiders own 0.65% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on RMD. Wells Fargo & Company decreased their price target on ResMed from $225.00 to $215.00 and set an "equal weight" rating on the stock in a research note on Friday, August 7th. Piper Sandler dropped their price objective on shares of ResMed from $233.00 to $225.00 and set a "neutral" rating for the company in a research note on Friday, August 7th. Jefferies Financial Group cut their price objective on shares of ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a report on Friday, July 10th. Robert W. Baird set a $213.00 target price on shares of ResMed in a research report on Friday, August 7th. Finally, Morgan Stanley restated an "equal weight" rating and issued a $230.00 target price (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. Six research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, ResMed presently has a consensus rating of "Hold" and a consensus target price of $240.31.

ResMed Profile

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.

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