Element Squared LLC Buys Shares of 6,067 ResMed Inc. $RMD

Key Points

• Element Squared LLC opened a new position in ResMed in Q4, purchasing 6,067 shares valued at about $1.46 million per its Form 13F filing.
• ResMed beat expectations with quarterly EPS of $2.81 vs. $2.68 consensus and reported revenue of $1.42 billion, up 11% year-over-year, while the stock trades with a market cap of about $32.7 billion and a P/E of 22.18.
• Insiders sold shares recently (CEO Michael Farrell sold 4,991 shares) even as analysts maintain an average rating of “Moderate Buy” with an average price target of $299.27.

Element Squared LLC purchased a new position in shares of ResMed Inc. (NYSE:RMD - Free Report) during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 6,067 shares of the medical equipment provider's stock, valued at approximately $1,461,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Landscape Capital Management L.L.C. grew its stake in shares of ResMed by 123.2% in the third quarter. Landscape Capital Management L.L.C. now owns 49,017 shares of the medical equipment provider's stock worth $13,417,000 after acquiring an additional 27,060 shares in the last quarter. Nordea Investment Management AB increased its position in shares of ResMed by 37.2% during the fourth quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock worth $262,027,000 after acquiring an additional 294,124 shares during the period. Allianz Asset Management GmbH raised its stake in shares of ResMed by 44.8% in the third quarter. Allianz Asset Management GmbH now owns 357,421 shares of the medical equipment provider's stock valued at $97,837,000 after acquiring an additional 110,647 shares in the last quarter. WCM Investment Management LLC acquired a new stake in shares of ResMed in the third quarter valued at $3,110,000. Finally, Russell Investments Group Ltd. boosted its holdings in ResMed by 20.2% in the third quarter. Russell Investments Group Ltd. now owns 112,755 shares of the medical equipment provider's stock valued at $30,847,000 after purchasing an additional 18,966 shares during the period. Hedge funds and other institutional investors own 54.98% of the company's stock.

ResMed Stock Up 0.1%

ResMed stock opened at $224.23 on Friday. The stock has a market cap of $32.67 billion, a PE ratio of 22.18, a P/E/G ratio of 1.49 and a beta of 0.93. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.06 and a quick ratio of 2.32. The stock's fifty day moving average is $246.52 and its two-hundred day moving average is $253.41. ResMed Inc. has a 1-year low of $199.92 and a 1-year high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Friday, January 30th. The medical equipment provider reported $2.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.13. ResMed had a return on equity of 25.20% and a net margin of 27.53%.The business had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.40 billion. During the same period in the prior year, the firm posted $2.43 EPS. The business's quarterly revenue was up 11.0% compared to the same quarter last year. On average, sell-side analysts expect that ResMed Inc. will post 9.47 EPS for the current fiscal year.

ResMed Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 19th. Shareholders of record on Thursday, February 12th were paid a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 1.1%. The ex-dividend date was Thursday, February 12th. ResMed's dividend payout ratio is currently 23.74%.

Insider Activity at ResMed

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $273.78, for a total transaction of $1,366,435.98. Following the sale, the chief executive officer owned 466,223 shares of the company's stock, valued at approximately $127,642,532.94. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Peter C. Farrell sold 2,000 shares of the business's stock in a transaction that occurred on 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. Insiders sold 23,023 shares of company stock worth $5,843,111 over the last quarter. 0.65% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several equities research analysts have weighed in on RMD shares. UBS Group restated a "buy" rating and set a $345.00 price target on shares of ResMed in a report on Friday, December 12th. Weiss Ratings cut ResMed from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, March 19th. Citigroup boosted their price objective on ResMed from $330.00 to $345.00 and gave the stock a "buy" rating in a research report on Monday, February 2nd. Robert W. Baird set a $281.00 target price on shares of ResMed in a research note on Friday, January 30th. Finally, Piper Sandler raised their target price on shares of ResMed from $270.00 to $275.00 and gave the company a "neutral" rating in a report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $299.27.

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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