Intech Investment Management LLC Boosts Stock Position in ResMed Inc. $RMD

Key Points

• Intech Investment Management more than doubled its stake in ResMed during the fourth quarter, increasing its position by 116.4% to 67,729 shares valued at about $16.3 million.
• ResMed also saw mixed insider activity, with Director Peter C. Farrell and CEO Michael J. Farrell selling shares; insiders have sold 18,973 shares worth $4.39 million over the last three months.
• The company reported better-than-expected quarterly results, with EPS of $2.86 topping estimates and revenue rising 10.8% year over year, while it also announced a quarterly dividend of $0.60 per share.

Intech Investment Management LLC raised its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 116.4% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 67,729 shares of the medical equipment provider's stock after purchasing an additional 36,430 shares during the quarter. Intech Investment Management LLC's holdings in ResMed were worth $16,314,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in RMD. Swedbank AB boosted its holdings in shares of ResMed by 103.1% in the 4th quarter. Swedbank AB now owns 1,102,476 shares of the medical equipment provider's stock valued at $265,553,000 after acquiring an additional 559,765 shares during the last quarter. First Trust Advisors LP boosted its holdings in shares of ResMed by 285.1% in the 3rd quarter. First Trust Advisors LP now owns 445,198 shares of the medical equipment provider's stock valued at $121,864,000 after acquiring an additional 329,588 shares during the last quarter. Marshall Wace LLP boosted its holdings in shares of ResMed by 2,373.1% in the 3rd quarter. Marshall Wace LLP now owns 310,987 shares of the medical equipment provider's stock valued at $85,126,000 after acquiring an additional 298,412 shares during the last quarter. Nordea Investment Management AB boosted its holdings in shares of ResMed by 37.2% in the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock valued at $262,027,000 after acquiring an additional 294,124 shares during the last quarter. Finally, Vanguard Group Inc. boosted its holdings in shares of ResMed by 1.6% in the 3rd quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock valued at $5,211,940,000 after acquiring an additional 293,515 shares during the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total transaction of $450,000.00. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $207.82, for a total transaction of $1,037,229.62. Following the sale, the chief executive officer directly owned 466,223 shares in the company, valued at $96,890,463.86. This trade represents a 1.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,973 shares of company stock worth $4,386,031 over the last three months. 0.65% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. 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 report on Friday, January 30th. Royal Bank Of Canada upped their price objective on shares of ResMed from $314.00 to $321.00 and gave the company an "outperform" rating in a report on Friday, May 1st. Robert W. Baird set a $225.00 price objective on shares of ResMed in a report on Friday, May 1st. Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Finally, Stifel Nicolaus upped their price objective on shares of ResMed from $260.00 to $265.00 and gave the company a "hold" rating in a report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, ResMed has an average rating of "Moderate Buy" and a consensus target price of $286.18.

ResMed Stock Performance

Shares of NYSE RMD opened at $190.58 on Friday. The company's fifty day moving average price is $216.93 and its 200 day moving average price is $239.34. ResMed Inc. has a 1 year low of $190.38 and a 1 year high of $293.81. The company has a market capitalization of $27.64 billion, a PE ratio of 18.38, a price-to-earnings-growth ratio of 1.30 and a beta of 0.84. 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 quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same period in the prior year, the firm posted $2.37 earnings per share. The firm's quarterly revenue was up 10.8% compared to the same quarter last year. On average, research analysts predict that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, May 14th will be issued a dividend of $0.60 per share. The ex-dividend date of this dividend is Thursday, May 14th. This represents a $2.40 dividend on an annualized basis and a yield of 1.3%. ResMed's dividend payout ratio is 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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