Envestnet Portfolio Solutions Inc. Cuts Position in ResMed Inc. $RMD

Key Points

• Envestnet Portfolio Solutions Inc. reduced its holdings in ResMed Inc. by 28.9% during the second quarter, leaving them with 3,587 shares valued at approximately $925,000.
• Despite the decrease by Envestnet, other institutional investors like Sequoia Financial Advisors LLC and Allspring Global Investments Holdings LLC increased their stakes in ResMed by considerable margins in the same period.
• ResMed recently announced a boost in its quarterly dividend from $0.53 to $0.60 per share, representing a 0.9% yield with a payout ratio of 25.24%.

Envestnet Portfolio Solutions Inc. decreased its position in ResMed Inc. (NYSE:RMD - Free Report) by 28.9% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,587 shares of the medical equipment provider's stock after selling 1,458 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in ResMed were worth $925,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC raised its position in ResMed by 79.3% in the second quarter. Sequoia Financial Advisors LLC now owns 4,190 shares of the medical equipment provider's stock valued at $1,081,000 after purchasing an additional 1,853 shares during the period. Allspring Global Investments Holdings LLC raised its position in ResMed by 33.3% in the second quarter. Allspring Global Investments Holdings LLC now owns 9,144 shares of the medical equipment provider's stock valued at $2,343,000 after purchasing an additional 2,286 shares during the period. OFI Invest Asset Management raised its position in ResMed by 48.2% in the second quarter. OFI Invest Asset Management now owns 461 shares of the medical equipment provider's stock valued at $119,000 after purchasing an additional 150 shares during the period. Vanguard Personalized Indexing Management LLC raised its position in ResMed by 16.8% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 30,730 shares of the medical equipment provider's stock valued at $7,929,000 after purchasing an additional 4,424 shares during the period. Finally, Concurrent Investment Advisors LLC raised its position in ResMed by 2.7% in the second quarter. Concurrent Investment Advisors LLC now owns 2,226 shares of the medical equipment provider's stock valued at $574,000 after purchasing an additional 59 shares during the period. Hedge funds and other institutional investors own 54.98% of the company's stock.

ResMed Stock Performance

NYSE:RMD opened at $267.96 on Monday. The firm has a market capitalization of $39.11 billion, a PE ratio of 28.18, a price-to-earnings-growth ratio of 1.79 and a beta of 0.83. The business's fifty day moving average price is $277.13 and its 200 day moving average price is $257.67. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53. ResMed Inc. has a 12 month low of $199.92 and a 12 month high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last posted its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating the consensus estimate of $2.47 by $0.08. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. ResMed had a return on equity of 25.62% and a net margin of 27.22%.ResMed's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.08 earnings per share. On average, sell-side analysts anticipate that ResMed Inc. will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th were paid a $0.60 dividend. This is a boost from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a yield of 0.9%. The ex-dividend date was Thursday, August 14th. ResMed's payout ratio is currently 25.24%.

Insider Buying and Selling at ResMed

In other ResMed news, Director John Hernandez sold 2,575 shares of the company's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $287.10, for a total value of $739,282.50. Following the completion of the transaction, the director owned 4,045 shares in the company, valued at $1,161,319.50. This represents a 38.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the company's stock in a transaction on Tuesday, October 7th. The shares were sold at an average price of $282.85, for a total transaction of $2,265,345.65. Following the completion of the transaction, the chief executive officer owned 467,792 shares of the company's stock, valued at $132,314,967.20. This represents a 1.68% decrease in their position. The disclosure for this sale can be found here. Insiders sold 18,743 shares of company stock worth $5,284,514 over the last 90 days. Corporate insiders own 0.65% of the company's stock.

Analyst Upgrades and Downgrades

RMD has been the topic of a number of research analyst reports. CLSA raised ResMed from a "hold" rating to an "outperform" rating in a research report on Tuesday, September 2nd. William Blair raised ResMed to a "strong-buy" rating in a research report on Friday, August 1st. Citigroup began coverage on ResMed in a research report on Thursday, September 18th. They set a "buy" rating and a $330.00 price objective on the stock. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of ResMed in a research report on Wednesday, October 8th. Finally, Piper Sandler upped their price objective on ResMed from $248.00 to $270.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $292.91.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.

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