King Luther Capital Management Corp Makes New $252,000 Investment in ResMed Inc. (NYSE:RMD)

Key Points

• King Luther Capital Management Corp acquired 1,124 shares of ResMed Inc., valued at approximately $252,000 during the 1st quarter.
• ResMed announced a quarterly dividend of $0.60, which is a significant increase from the previous $0.53, and will be paid on September 18th.
• Multiple firms updated their price targets for ResMed, with UBS Group increasing their target from $285.00 to $325.00 and Mizuho raising theirs from $270.00 to $290.00.

King Luther Capital Management Corp bought a new position in shares of ResMed Inc. (NYSE:RMD - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 1,124 shares of the medical equipment provider's stock, valued at approximately $252,000.

A number of other institutional investors also recently bought and sold shares of the company. Global X Japan Co. Ltd. grew its stake in shares of ResMed by 121.4% in the first quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock valued at $28,000 after buying an additional 68 shares in the last quarter. Colonial Trust Co SC increased its holdings in ResMed by 6,250.0% during the 4th quarter. Colonial Trust Co SC now owns 127 shares of the medical equipment provider's stock worth $29,000 after purchasing an additional 125 shares during the last quarter. Optiver Holding B.V. acquired a new position in shares of ResMed in the 4th quarter valued at approximately $33,000. Golden State Wealth Management LLC grew its position in shares of ResMed by 384.8% during the first quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock worth $36,000 after buying an additional 127 shares in the last quarter. Finally, Itau Unibanco Holding S.A. grew its position in shares of ResMed by 1,000.0% during the fourth quarter. Itau Unibanco Holding S.A. now owns 165 shares of the medical equipment provider's stock worth $38,000 after buying an additional 150 shares in the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Price Performance

Shares of RMD traded up $0.10 on Friday, hitting $284.82. The company's stock had a trading volume of 1,014,567 shares, compared to its average volume of 1,003,223. The company has a market capitalization of $41.70 billion, a PE ratio of 29.95, a PEG ratio of 1.94 and a beta of 0.77. 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 fifty-two week low of $199.92 and a fifty-two week high of $293.08. The company has a 50 day moving average price of $264.17 and a 200 day moving average price of $243.05.

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

ResMed Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th will be issued a dividend of $0.60 per share. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $2.40 annualized dividend and a yield of 0.8%. This is a positive change from ResMed's previous quarterly dividend of $0.53. ResMed's dividend payout ratio (DPR) is currently 22.29%.

Insiders Place Their Bets

In other news, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total value of $2,238,355.32. Following the transaction, the chief executive officer owned 455,503 shares of the company's stock, valued at $127,303,978.44. This represents a 1.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Peter C. Farrell sold 945 shares of the stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total value of $241,438.05. Following the completion of the transaction, the director directly owned 68,273 shares in the company, valued at approximately $17,443,068.77. This trade represents a 1.37% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 27,063 shares of company stock valued at $7,058,835. 0.71% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several brokerages have recently commented on RMD. UBS Group lifted their target price on ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. William Blair upgraded ResMed to a "strong-buy" rating in a research report on Friday, August 1st. Morgan Stanley set a $286.00 target price on ResMed and gave the stock an "overweight" rating in a research report on Tuesday, May 20th. Piper Sandler raised their price target on ResMed from $248.00 to $270.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. Finally, JPMorgan Chase & Co. lifted their target price on ResMed from $286.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, ResMed has a consensus rating of "Moderate Buy" and an average target price of $274.83.

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.