BI Asset Management Fondsmaeglerselskab A S Decreases Holdings in ResMed Inc. $RMD

Key Points

• BI Asset Management cut its ResMed stake by 88% in Q1, selling 54,875 shares and leaving it with 7,487 shares worth about $1.68 million.
• ResMed reported better-than-expected quarterly results, with EPS of $2.86 on revenue of $1.43 billion, while revenue rose 10.8% year over year.
• Insider selling continued, including CEO Michael J. Farrell’s sale of 4,991 shares under a Rule 10b5-1 plan, even as analysts kept a generally Moderate Buy outlook with a consensus price target of $270.82.

BI Asset Management Fondsmaeglerselskab A S trimmed its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 88.0% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 7,487 shares of the medical equipment provider's stock after selling 54,875 shares during the quarter. BI Asset Management Fondsmaeglerselskab A S's holdings in ResMed were worth $1,681,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. State Street Corp lifted its stake in ResMed by 1.2% in the fourth quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider's stock worth $1,595,862,000 after purchasing an additional 76,244 shares during the last quarter. Bank of New York Mellon Corp grew its position in ResMed by 7.4% during the 4th quarter. Bank of New York Mellon Corp now owns 4,890,654 shares of the medical equipment provider's stock worth $1,178,012,000 after acquiring an additional 337,738 shares during the last quarter. Geode Capital Management LLC grew its position in ResMed by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider's stock worth $1,032,877,000 after acquiring an additional 51,218 shares during the last quarter. Morgan Stanley increased its stake in ResMed by 25.0% in the 4th quarter. Morgan Stanley now owns 2,891,697 shares of the medical equipment provider's stock worth $696,523,000 after purchasing an additional 578,559 shares during the period. Finally, Northern Trust Corp increased its stake in ResMed by 5.2% in the 4th quarter. Northern Trust Corp now owns 1,785,384 shares of the medical equipment provider's stock worth $430,045,000 after purchasing an additional 87,502 shares during the period. Institutional investors own 54.98% of the company's stock.

Insider Activity at ResMed

In related news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $193.96, for a total transaction of $968,054.36. Following the completion of the transaction, the chief executive officer directly owned 466,256 shares of the company's stock, valued at $90,435,013.76. This trade represents a 1.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 16,973 shares of company stock worth $3,580,754. Insiders own 0.65% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on RMD shares. JPMorgan Chase & Co. assumed coverage on ResMed in a research note on Wednesday, April 15th. They set an "overweight" rating for the company. Evercore set a $255.00 target price on shares of ResMed and gave the stock an "outperform" rating in a research note on Monday, April 13th. Robert W. Baird set a $225.00 price target on shares of ResMed in a report on Friday, May 1st. Weiss Ratings downgraded shares of ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 22nd. Finally, KeyCorp dropped their target price on shares of ResMed from $290.00 to $266.00 and set an "overweight" rating for the company in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $270.82.

ResMed Stock Up 2.7%

Shares of ResMed stock opened at $196.34 on Thursday. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06. The company's fifty day simple moving average is $204.53 and its two-hundred day simple moving average is $231.80. The company has a market cap of $28.48 billion, a P/E ratio of 18.93, a PEG ratio of 1.22 and a beta of 0.80. 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 issued its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, topping 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 net margin of 27.44% and a return on equity of 25.35%. The company's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period in the prior year, the business earned $2.37 EPS. Research analysts anticipate that ResMed Inc. will post 11.13 EPS for the current year.

ResMed Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th were given a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Thursday, May 14th. ResMed's payout ratio is presently 23.14%.

About ResMed

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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