Marietta Investment Partners LLC Invests $2.70 Million in ResMed Inc. $RMD

Key Points

• Marietta Investment Partners established a new stake in ResMed, buying 9,858 shares worth approximately $2.70 million during the third quarter, while institutional investors now own about 54.98% of the company.
• Insider selling has been notable recently: CEO Michael J. Farrell sold 4,991 shares (~$1.37M) and Director Peter C. Farrell sold 2,000 shares (~$520K), with insiders offloading 16,082 shares worth $4.15M over the past 90 days.
• Analysts are broadly positive—MarketBeat shows a consensus rating of "Moderate Buy" with a target of $299.27 and upgrades including Citigroup's raise to $345—and the company declared a quarterly dividend of $0.60 (annualized $2.40, ~0.9% yield).

Marietta Investment Partners LLC acquired a new stake in shares of ResMed Inc. (NYSE:RMD - Free Report) during the third quarter, according to its most recent filing with the SEC. The fund acquired 9,858 shares of the medical equipment provider's stock, valued at approximately $2,698,000.

A number of other institutional investors have also added to or reduced their stakes in RMD. Quadcap Wealth Management LLC increased its position in shares of ResMed by 2.5% during the second quarter. Quadcap Wealth Management LLC now owns 1,880 shares of the medical equipment provider's stock valued at $485,000 after buying an additional 45 shares during the period. NBT Bank N A NY grew its stake in ResMed by 22.9% during the third quarter. NBT Bank N A NY now owns 252 shares of the medical equipment provider's stock valued at $69,000 after acquiring an additional 47 shares in the last quarter. OFI Invest Asset Management grew its stake in ResMed by 10.4% during the third quarter. OFI Invest Asset Management now owns 509 shares of the medical equipment provider's stock valued at $139,000 after acquiring an additional 48 shares in the last quarter. IMA Advisory Services Inc. lifted its stake in ResMed by 52.7% in the 3rd quarter. IMA Advisory Services Inc. now owns 139 shares of the medical equipment provider's stock worth $38,000 after purchasing an additional 48 shares in the last quarter. Finally, New Wave Wealth Advisors LLC boosted its holdings in ResMed by 2.8% in the 3rd quarter. New Wave Wealth Advisors LLC now owns 1,899 shares of the medical equipment provider's stock valued at $520,000 after purchasing an additional 52 shares during the period. Hedge funds and other institutional investors own 54.98% of the company's stock.

Insider Activity at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $273.78, for a total value of $1,366,435.98. Following the transaction, the chief executive officer owned 466,223 shares in the company, valued at approximately $127,642,532.94. This trade represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Peter C. Farrell sold 2,000 shares of the company's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $260.22, for a total transaction of $520,440.00. Following the sale, the director owned 62,773 shares of the company's stock, valued at $16,334,790.06. This represents a 3.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 16,082 shares of company stock worth $4,152,307. 0.65% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

RMD has been the topic of several research analyst reports. Robert W. Baird set a $281.00 price target on shares of ResMed in a report on Friday, January 30th. KeyCorp restated an "overweight" rating and issued a $302.00 target price on shares of ResMed in a research note on Friday, January 30th. Citigroup lifted their price target on ResMed from $330.00 to $345.00 and gave the company a "buy" rating in a research report on Monday, February 2nd. Wall Street Zen raised shares of ResMed from a "hold" rating to a "buy" rating in a research note on Saturday, February 7th. Finally, Stifel Nicolaus boosted their price target on shares of ResMed from $260.00 to $265.00 and gave the stock a "hold" rating in a research note on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $299.27.

ResMed Trading Down 1.4%

RMD stock opened at $255.39 on Friday. The company has a market capitalization of $37.21 billion, a PE ratio of 25.26, a price-to-earnings-growth ratio of 1.72 and a beta of 0.88. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.32 and a current ratio of 3.06. ResMed Inc. has a one year low of $199.92 and a one year high of $293.81. The company's 50 day moving average price is $255.06 and its two-hundred day moving average price is $260.44.

ResMed (NYSE:RMD - Get Free Report) last issued its earnings results on Thursday, January 29th. The medical equipment provider reported $2.81 EPS for the quarter, topping analysts' consensus estimates of $2.68 by $0.13. ResMed had a net margin of 27.53% and a return on equity of 25.20%. The company had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $1.40 billion. During the same quarter last year, the company earned $2.43 EPS. The firm's revenue was up 11.0% compared to the same quarter last year. As a group, analysts predict that ResMed Inc. will post 9.47 earnings per share for the current fiscal year.

ResMed Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Thursday, February 12th will be issued a dividend of $0.60 per share. The ex-dividend date is Thursday, February 12th. This represents a $2.40 annualized dividend and a yield of 0.9%. ResMed's dividend payout ratio is currently 23.74%.

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.

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