Mitsubishi UFJ Asset Management Co. Ltd. Increases Holdings in ResMed Inc. $RMD

Key Points

• Mitsubishi UFJ Asset Management boosted its stake in ResMed by 6.7% in Q4 to 309,089 shares, worth about $75.7 million and representing a 0.21% ownership of the company.
• ResMed beat expectations for the quarter with EPS of $2.86 vs. $2.79 and revenue of $1.43 billion (up 10.8% year-over-year), and the company has a market cap of roughly $30.1 billion.
• Analysts are generally positive—MarketBeat shows an average rating of "Moderate Buy" with an average target price of $286.18, while individual targets range (e.g., RBC to $321, Wells Fargo cut to $227).

Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in ResMed Inc. (NYSE:RMD - Free Report) by 6.7% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 309,089 shares of the medical equipment provider's stock after buying an additional 19,483 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.21% of ResMed worth $75,668,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in ResMed by 1.6% in the 3rd quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock worth $5,211,940,000 after buying an additional 293,515 shares in the last quarter. Nordea Investment Management AB lifted its holdings in ResMed by 37.2% in the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock worth $262,027,000 after buying an additional 294,124 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in ResMed by 6.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 846,134 shares of the medical equipment provider's stock worth $231,587,000 after buying an additional 49,540 shares in the last quarter. Caisse de depot et placement du Quebec lifted its holdings in ResMed by 28.0% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 565,901 shares of the medical equipment provider's stock worth $154,904,000 after buying an additional 123,781 shares in the last quarter. Finally, Captrust Financial Advisors lifted its holdings in ResMed by 5.4% in the 3rd quarter. Captrust Financial Advisors now owns 537,623 shares of the medical equipment provider's stock worth $147,164,000 after buying an additional 27,565 shares in the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on RMD. Evercore set a $255.00 price objective on shares of ResMed and gave the stock an "outperform" rating in a report on Monday, April 13th. Royal Bank Of Canada upped their target price on shares of ResMed from $314.00 to $321.00 and gave the company an "outperform" rating in a research note on Friday, May 1st. Robert W. Baird set a $225.00 target price on shares of ResMed in a research note on Friday, May 1st. Stifel Nicolaus upped their target price on shares of ResMed from $260.00 to $265.00 and gave the company a "hold" rating in a research note on Friday, January 30th. Finally, Wells Fargo & Company cut their target price on shares of ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $286.18.

Insider Activity

In related news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total transaction of $450,000.00. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $225.50, for a total transaction of $1,125,470.50. Following the sale, the chief executive officer owned 466,223 shares in the company, valued at approximately $105,133,286.50. This trade represents a 1.06% 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. In the last quarter, insiders have sold 18,973 shares of company stock worth $4,715,237. 0.65% of the stock is owned by company insiders.

ResMed Stock Performance

Shares of ResMed stock opened at $206.83 on Friday. The firm has a market cap of $30.13 billion, a PE ratio of 19.94, a price-to-earnings-growth ratio of 1.34 and a beta of 0.84. The firm's 50-day simple moving average is $230.41 and its 200-day simple moving average is $245.04. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01. ResMed Inc. has a 1 year low of $198.64 and a 1 year high of $293.81.

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 (EPS) for the quarter, beating analysts' consensus estimates of $2.79 by $0.07. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The company's revenue for the quarter was up 10.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.37 EPS. Equities analysts forecast that ResMed Inc. will post 11.13 earnings per share for the current fiscal year.

ResMed Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, May 14th will be paid a dividend of $0.60 per share. The ex-dividend date is Thursday, May 14th. This represents a $2.40 annualized dividend and a yield of 1.2%. ResMed's dividend payout ratio is 23.14%.

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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