Mirae Asset Global Investments Co. Ltd. Makes New Investment in ResMed Inc. $RMD

Key Points

• Mirae Asset Global Investments initiated a position in ResMed, buying 35,805 shares worth approximately $7.9 million in the third quarter. Institutional investors and hedge funds own about 55% of the stock.
• ResMed beat quarterly earnings and revenue estimates, reporting $2.91 per share and $1.41 billion in revenue; revenue increased 5.9% year over year. The company also declared a quarterly dividend of $0.66 per share.
• Analysts’ consensus rating is Hold, with an average price target of $253.69; recent target changes included an increase to $288 from RBC and $270 from Citigroup.

Mirae Asset Global Investments Co. Ltd. purchased a new position in ResMed Inc. (NYSE:RMD - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 35,805 shares of the medical equipment provider's stock, valued at approximately $7,916,000.

Other large investors also recently added to or reduced their stakes in the company. Moss Adams Wealth Advisors LLC increased its stake in shares of ResMed by 3.1% during the third quarter. Moss Adams Wealth Advisors LLC now owns 3,477 shares of the medical equipment provider's stock worth $769,000 after purchasing an additional 103 shares in the last quarter. MGO One Seven LLC acquired a new position in shares of ResMed during the 3rd quarter worth about $300,000. United Asset Strategies Inc. lifted its stake in ResMed by 1.9% in the 3rd quarter. United Asset Strategies Inc. now owns 16,934 shares of the medical equipment provider's stock valued at $3,744,000 after buying an additional 318 shares in the last quarter. Choreo LLC lifted its stake in ResMed by 9.7% in the 3rd quarter. Choreo LLC now owns 4,297 shares of the medical equipment provider's stock valued at $950,000 after buying an additional 381 shares in the last quarter. Finally, Interchange Capital Partners LLC acquired a new stake in ResMed in the 3rd quarter worth about $207,000. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Stock Performance

NYSE:RMD opened at $240.43 on Thursday. The company's 50-day moving average price is $231.86 and its 200-day moving average price is $225.06. The company has a current ratio of 2.65, a quick ratio of 1.88 and a debt-to-equity ratio of 0.04. The company has a market cap of $33.82 billion, a P/E ratio of 19.69, a P/E/G ratio of 1.38 and a beta of 0.77. ResMed Inc. has a twelve month low of $180.26 and a twelve month high of $277.67.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The medical equipment provider reported $2.91 earnings per share for the quarter, topping analysts' consensus estimates of $2.67 by $0.24. ResMed had a net margin of 27.79% and a return on equity of 26.42%. The firm had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same period in the previous year, the business posted $2.55 earnings per share. ResMed's quarterly revenue was up 5.9% on a year-over-year basis. On average, sell-side analysts forecast that ResMed Inc. will post 12.14 earnings per share for the current fiscal year.

ResMed Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, November 12th will be issued a dividend of $0.66 per share. This represents a $2.64 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, November 12th. ResMed's payout ratio is currently 24.04%.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Citigroup boosted their price objective on ResMed from $240.00 to $270.00 and gave the stock a "neutral" rating in a research note on Friday, October 30th. Rothschild & Co Redburn assumed coverage on ResMed in a report on Wednesday, August 19th. They set a "neutral" rating and a $230.00 target price for the company. Weiss Ratings upgraded ResMed from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Royal Bank Of Canada lifted their price target on ResMed from $262.00 to $288.00 and gave the stock an "outperform" rating in a research note on Friday, October 30th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of ResMed in a research report on Friday, October 30th. Seven research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $253.69.

Insider Transactions at ResMed

In related news, 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 sale, the chief executive officer owned 466,256 shares of the company's stock, valued at approximately $95,904,196.64. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Michael J. Rider sold 400 shares of ResMed stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $255.00, for a total value of $102,000.00. Following the transaction, the general counsel owned 12,318 shares in the company, valued at approximately $3,141,090. The trade was a 3.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 16,343 shares of company stock worth $3,596,098 in the last ninety days. Insiders own 0.58% of the company's stock.

ResMed Profile

ResMed Inc is a medical equipment and software company that develops solutions for sleep-disordered breathing, respiratory conditions and other chronic diseases. The company is best known for its positive airway pressure (PAP) devices used to treat obstructive sleep apnea, along with masks, accessories and related patient support services.

ResMed also provides cloud-connected health technology, including remote-monitoring platforms and software used by healthcare providers, medical equipment suppliers and care organizations.

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