Assenagon Asset Management S.A. Grows Stock Holdings in ResMed Inc. $RMD

Key Points

• Assenagon Asset Management increased its ResMed stake by 48.2% in the second quarter, bringing its holdings to 83,852 shares valued at approximately $16.3 million. Institutional investors collectively own nearly 55% of ResMed’s outstanding stock.
• ResMed exceeded quarterly earnings expectations, reporting adjusted EPS of $2.95 versus the $2.89 consensus, while revenue rose 8.6% year over year to $1.46 billion. The company also raised its quarterly dividend to $0.66 per share.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $240.17. Meanwhile, insiders sold nearly 18,000 shares worth about $3.9 million over the past 90 days.

Assenagon Asset Management S.A. increased its holdings in shares of ResMed Inc. (NYSE:RMD - Free Report) by 48.2% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 83,852 shares of the medical equipment provider's stock after purchasing an additional 27,282 shares during the period. Assenagon Asset Management S.A. owned approximately 0.06% of ResMed worth $16,341,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently made changes to their positions in RMD. Jones Financial Companies Lllp raised its stake in shares of ResMed by 52.6% during the 1st quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider's stock valued at $645,000 after buying an additional 994 shares during the last quarter. Arrowstreet Capital Limited Partnership acquired a new stake in ResMed during the second quarter worth about $389,000. Brown Advisory Inc. raised its position in ResMed by 17.8% during the second quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider's stock valued at $409,000 after acquiring an additional 240 shares in the last quarter. Cresset Asset Management LLC purchased a new position in ResMed during the second quarter valued at approximately $206,000. Finally, Alliancebernstein L.P. lifted its holdings in ResMed by 24.2% in the second quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider's stock valued at $73,808,000 after acquiring an additional 55,790 shares during the period. Hedge funds and other institutional investors own 54.98% of the company's stock.

Insider Buying and Selling at ResMed

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the transaction, the chief executive officer directly owned 466,223 shares of the company's stock, valued at $101,893,036.65. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director directly owned 52,773 shares of the company's stock, valued at $11,873,925. This represents a 13.16% 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. Over the last ninety days, insiders have sold 17,982 shares of company stock worth $3,858,837. Insiders own 0.65% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. UBS Group restated a "buy" rating and issued a $300.00 price objective on shares of ResMed in a research report on Tuesday, July 21st. Royal Bank Of Canada lifted their target price on shares of ResMed from $234.00 to $244.00 and gave the company a "sector perform" rating in a report on Friday. Morgan Stanley reiterated an "equal weight" rating and issued a $230.00 target price (down from $286.00) on shares of ResMed in a research note on Wednesday, June 17th. Weiss Ratings lowered shares of ResMed from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, July 24th. Finally, JPMorgan Chase & Co. initiated coverage on shares of ResMed in a report on Wednesday, April 15th. They issued an "overweight" rating for the company. Seven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $240.17.

ResMed Stock Up 3.8%

ResMed stock opened at $220.06 on Tuesday. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. The stock has a market capitalization of $31.92 billion, a PE ratio of 21.10, a price-to-earnings-growth ratio of 1.29 and a beta of 0.76. The business has a 50 day simple moving average of $201.16 and a 200-day simple moving average of $221.75. ResMed Inc. has a 12 month low of $180.26 and a 12 month high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The firm had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the firm posted $2.55 EPS. The business's revenue was up 8.6% on a year-over-year basis. On average, analysts anticipate that ResMed Inc. will post 12 EPS for the current fiscal year.

ResMed Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.66 per share. This is a boost from ResMed's previous quarterly dividend of $0.60. This represents a $2.64 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Thursday, August 20th. ResMed's dividend payout ratio (DPR) is currently 23.01%.

ResMed 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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