KBC Group NV Reduces Stock Holdings in ResMed Inc. $RMD

Key Points

• KBC Group NV cut its ResMed stake by 84% in the first quarter, selling 199,680 shares and ending with 37,924 shares worth about $8.5 million.
• Wall Street sentiment remains mixed but generally positive: the stock carries a Moderate Buy consensus with a $246.25 average target price, though several firms recently lowered their price targets.
• ResMed reported strong quarterly results, beating EPS estimates at $2.86 and posting 10.8% revenue growth year over year, while also paying a quarterly dividend of $0.60 per share.

KBC Group NV trimmed its position in shares of ResMed Inc. (NYSE:RMD - Free Report) by 84.0% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 37,924 shares of the medical equipment provider's stock after selling 199,680 shares during the quarter. KBC Group NV's holdings in ResMed were worth $8,513,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the company. International Assets Investment Management LLC purchased a new position in shares of ResMed in the 4th quarter valued at approximately $25,000. ORG Partners LLC raised its holdings in ResMed by 181.6% in the fourth quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock worth $26,000 after purchasing an additional 69 shares in the last quarter. Imprint Wealth LLC purchased a new position in ResMed during the third quarter valued at $26,000. WFA of San Diego LLC purchased a new position in ResMed during the second quarter valued at $26,000. Finally, Sunbelt Securities Inc. bought a new stake in shares of ResMed during the 3rd quarter valued at $31,000. Hedge funds and other institutional investors own 54.98% of the company's stock.

Analysts Set New Price Targets

RMD has been the topic of a number of recent research reports. Morgan Stanley reaffirmed an "equal weight" rating and issued a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Weiss Ratings lowered shares of ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 22nd. Mizuho dropped their price objective on shares of ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 15th. Robert W. Baird set a $225.00 price objective on shares of ResMed in a report on Friday, May 1st. Finally, Jefferies Financial Group decreased their target price on shares of ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $246.25.

Insider Buying and Selling

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total value of $1,090,783.05. Following the completion of the sale, the chief executive officer owned 466,223 shares of the company's stock, valued at approximately $101,893,036.65. The trade was a 1.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 14,973 shares of company stock valued at $3,096,067. Insiders own 0.65% of the company's stock.

ResMed Trading Down 1.3%

ResMed stock opened at $193.19 on Thursday. ResMed Inc. has a one year low of $180.26 and a one year high of $293.81. The business's fifty day moving average is $199.04 and its 200 day moving average is $225.56. The stock has a market capitalization of $28.02 billion, a PE ratio of 18.63, a price-to-earnings-growth ratio of 1.22 and a beta of 0.78. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33.

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

ResMed Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, May 14th were issued a $0.60 dividend. The ex-dividend date was Thursday, May 14th. This represents a $2.40 annualized dividend and a yield of 1.2%. ResMed's dividend payout ratio (DPR) is currently 23.14%.

ResMed 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.