Korea Investment CORP Invests $9.85 Million in ResMed Inc. $RMD

Key Points

• Korea Investment CORP purchased 50,523 ResMed shares worth approximately $9.85 million during the second quarter, adding to institutional interest in the medical-device company. Hedge funds and other institutions own 54.98% of ResMed.
• ResMed reported quarterly EPS of $2.95, beating estimates of $2.89, while revenue rose 8.6% year over year to $1.46 billion. The company also increased its quarterly dividend from $0.60 to $0.66 per share.
• Analysts maintain a generally cautious outlook, with seven Buy ratings and ten Holds producing an average “Hold” rating and a $239.38 price target. Meanwhile, company insiders sold 22,973 shares worth about $4.89 million during the latest quarter.

Korea Investment CORP bought a new position in ResMed Inc. (NYSE:RMD - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 50,523 shares of the medical equipment provider's stock, valued at approximately $9,846,000.

Other institutional investors have also modified their holdings of the company. Imprint Wealth LLC purchased a new stake in shares of ResMed in the 3rd quarter worth approximately $26,000. WFA of San Diego LLC bought a new position in ResMed in the second quarter worth approximately $26,000. International Assets Investment Management LLC bought a new position in ResMed in the fourth quarter worth approximately $25,000. Sunbelt Securities Inc. purchased a new stake in ResMed during the third quarter worth $31,000. Finally, Bell Investment Advisors Inc purchased a new stake in ResMed during the second quarter worth $26,000. 54.98% of the stock is owned by hedge funds and other institutional investors.

ResMed Stock Performance

Shares of NYSE RMD opened at $232.57 on Tuesday. The company's fifty day moving average price is $208.01 and its 200 day moving average price is $219.69. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $293.58. The company has a market capitalization of $33.55 billion, a PE ratio of 22.30, a price-to-earnings-growth ratio of 1.45 and a beta of 0.76. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The company had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the prior year, the business posted $2.55 earnings per share. ResMed's revenue for the quarter was up 8.6% on a year-over-year basis. On average, research analysts predict that ResMed Inc. will post 12.03 earnings per share for the current year.

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, August 20th. This is a positive change from ResMed's previous quarterly dividend of $0.60. ResMed's payout ratio is currently 25.31%.

Analysts Set New Price Targets

A number of research firms have recently weighed in on RMD. UBS Group restated a "buy" rating and issued a $300.00 price target on shares of ResMed in a report on Tuesday, July 21st. Morgan Stanley reiterated an "equal weight" rating and set a $230.00 price objective (down from $286.00) on shares of ResMed in a research note on Wednesday, June 17th. Citigroup restated a "neutral" rating and issued a $235.00 target price (down from $270.00) on shares of ResMed in a research note on Sunday, July 12th. Jefferies Financial Group cut their price target on shares of ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a report on Friday, July 10th. Finally, Royal Bank Of Canada upped their price target on ResMed from $234.00 to $244.00 and gave the stock a "sector perform" rating in a research report on Friday, August 7th. Seven equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $239.38.

Insider Transactions at ResMed

In other news, Director Peter C. Farrell sold 8,000 shares of ResMed stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the transaction, the director owned 52,773 shares in the company, valued at $11,873,925. The trade was a 13.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $205.69, for a total value of $1,026,598.79. Following the completion of the transaction, the chief executive officer owned 466,256 shares of the company's stock, valued at $95,904,196.64. The trade was a 1.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 22,973 shares of company stock valued at $4,885,436. 0.65% of the stock is owned by insiders.

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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