Founders Financial Alliance LLC Makes New Investment in ResMed Inc. (NYSE:RMD)

Key Points

• Founders Financial Alliance LLC invested $330,000 in ResMed Inc., acquiring 1,472 shares of the medical equipment provider in the first quarter.
• Multiple institutional investors, including Vanguard Group and Northern Trust Corp, have increased their stakes in ResMed, indicating strong institutional interest in the company.
• ResMed announced a quarterly dividend of $0.60 per share, up from the previous $0.53, supporting a stable payout ratio of 22.29%.

Founders Financial Alliance LLC bought a new stake in ResMed Inc. (NYSE:RMD - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 1,472 shares of the medical equipment provider's stock, valued at approximately $330,000.

Other hedge funds have also recently added to or reduced their stakes in the company. GAMMA Investing LLC raised its stake in shares of ResMed by 23,982.6% during the first quarter. GAMMA Investing LLC now owns 733,556 shares of the medical equipment provider's stock valued at $164,207,000 after acquiring an additional 730,510 shares during the last quarter. OVERSEA CHINESE BANKING Corp Ltd raised its stake in shares of ResMed by 1,168.5% during the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 590,895 shares of the medical equipment provider's stock valued at $132,272,000 after acquiring an additional 544,311 shares during the last quarter. Captrust Financial Advisors raised its stake in ResMed by 813.4% during the fourth quarter. Captrust Financial Advisors now owns 443,340 shares of the medical equipment provider's stock worth $101,387,000 after buying an additional 394,803 shares during the last quarter. AQR Capital Management LLC raised its stake in ResMed by 133.6% during the fourth quarter. AQR Capital Management LLC now owns 625,054 shares of the medical equipment provider's stock worth $142,944,000 after buying an additional 357,466 shares during the last quarter. Finally, Allianz Asset Management GmbH raised its stake in ResMed by 334.0% during the first quarter. Allianz Asset Management GmbH now owns 455,124 shares of the medical equipment provider's stock worth $101,880,000 after buying an additional 350,245 shares during the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

Insider Activity at ResMed

In related news, Director Witte Jan De sold 2,000 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $243.47, for a total transaction of $486,940.00. Following the sale, the director directly owned 5,806 shares in the company, valued at approximately $1,413,586.82. This represents a 25.62% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Peter C. Farrell sold 945 shares of the company's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total transaction of $241,438.05. Following the sale, the director owned 68,273 shares in the company, valued at $17,443,068.77. The trade was a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 27,063 shares of company stock worth $7,058,835. 0.71% of the stock is owned by corporate insiders.

ResMed Stock Performance

RMD traded up $0.43 during midday trading on Monday, reaching $284.33. The company had a trading volume of 835,204 shares, compared to its average volume of 1,165,057. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. The stock has a market cap of $41.69 billion, a PE ratio of 29.73, a P/E/G ratio of 1.91 and a beta of 0.77. ResMed Inc. has a 12-month low of $199.92 and a 12-month high of $293.08. The business has a 50-day moving average price of $261.33 and a two-hundred day moving average price of $242.01.

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

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, August 14th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Wednesday, August 13th. This is an increase from ResMed's previous quarterly dividend of $0.53. ResMed's dividend payout ratio is currently 22.29%.

Analyst Ratings Changes

RMD has been the subject of a number of analyst reports. JPMorgan Chase & Co. lifted their target price on shares of ResMed from $286.00 to $290.00 and gave the stock an "overweight" rating in a research note on Thursday, April 24th. Morgan Stanley set a $286.00 target price on shares of ResMed and gave the stock an "overweight" rating in a research note on Tuesday, May 20th. Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a research note on Sunday. UBS Group lifted their target price on shares of ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Finally, KeyCorp raised their price target on shares of ResMed from $274.00 to $298.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. One analyst has rated the stock with a sell rating, four have issued a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $274.83.

ResMed Company Profile

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.