Employees Retirement System of Texas Boosts Stock Holdings in ResMed Inc. $RMD

Key Points

• Employees Retirement System of Texas increased its ResMed stake by 29.1% in the fourth quarter, buying an additional 6,480 shares and bringing its position to 28,780 shares worth about $6.93 million.
• ResMed reported better-than-expected quarterly results, posting earnings of $2.86 per share on revenue of $1.43 billion, with revenue up 10.8% year over year.
• The company also announced a quarterly dividend of $0.60 per share, and analysts currently rate the stock a Moderate Buy with a consensus price target of $286.18.

Employees Retirement System of Texas increased its stake in ResMed Inc. (NYSE:RMD - Free Report) by 29.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 28,780 shares of the medical equipment provider's stock after acquiring an additional 6,480 shares during the period. Employees Retirement System of Texas' holdings in ResMed were worth $6,932,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of RMD. Jones Financial Companies Lllp raised its holdings in shares of ResMed by 52.6% in the 1st quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider's stock valued at $645,000 after purchasing an additional 994 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in ResMed during the 2nd quarter worth about $389,000. Brown Advisory Inc. boosted its stake in ResMed by 17.8% in 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 acquired a new position in ResMed in the second quarter valued at $206,000. Finally, Alliancebernstein L.P. boosted its stake 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 in the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Robert W. Baird set a $225.00 price objective on shares of ResMed in a research note on Friday, May 1st. Wells Fargo & Company decreased their price objective on shares of ResMed from $270.00 to $227.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. Piper Sandler upped their price objective on shares of ResMed from $270.00 to $275.00 and gave the company a "neutral" rating in a research note on Friday, January 30th. Finally, Citigroup decreased their price objective on shares of ResMed from $345.00 to $340.00 and set a "buy" rating for the company in a research note on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $286.18.

Insider Activity

In other news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $207.82, for a total transaction of $1,037,229.62. Following the completion of the sale, the chief executive officer owned 466,223 shares in the company, valued at approximately $96,890,463.86. This represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of the 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 18,973 shares of company stock valued at $4,386,031 in the last quarter. Insiders own 0.65% of the company's stock.

ResMed Price Performance

Shares of RMD opened at $206.24 on Thursday. ResMed Inc. has a fifty-two week low of $198.61 and a fifty-two week high of $293.81. The company has a market capitalization of $29.92 billion, a price-to-earnings ratio of 19.89, a price-to-earnings-growth ratio of 1.33 and a beta of 0.84. The firm has a 50-day simple moving average of $218.28 and a 200-day simple moving average of $240.03. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter in the prior year, the firm earned $2.37 earnings per share. The business's quarterly revenue was up 10.8% compared to the same quarter last year. On average, equities research analysts anticipate that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th will be paid a dividend of $0.60 per share. The ex-dividend date is Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. ResMed's dividend payout ratio is 23.14%.

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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