Nuveen LLC Makes New Investment in ResMed Inc. $RMD

Key Points

• Nuveen LLC acquired a new stake in ResMed Inc., purchasing 310,438 shares valued at approximately $69 million, representing about 0.21% of the company.
• ResMed recently announced a quarterly dividend increase from $0.53 to $0.60, with a dividend yield of 0.8%.
• Analyst ratings for ResMed show a consensus of "Moderate Buy" with a target price averaging $274.83, indicating positive sentiment among equity research analysts.

Nuveen LLC bought a new position in shares of ResMed Inc. (NYSE:RMD - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 310,438 shares of the medical equipment provider's stock, valued at approximately $69,492,000. Nuveen LLC owned about 0.21% of ResMed as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Vanguard Group Inc. increased its holdings in ResMed by 1.8% during the 1st quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider's stock worth $4,139,815,000 after purchasing an additional 320,240 shares during the last quarter. Northern Trust Corp grew its position in shares of ResMed by 20.6% during the fourth quarter. Northern Trust Corp now owns 1,702,590 shares of the medical equipment provider's stock worth $389,365,000 after buying an additional 290,664 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of ResMed by 4.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider's stock worth $223,431,000 after buying an additional 41,108 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of ResMed by 28.6% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 954,612 shares of the medical equipment provider's stock worth $218,310,000 after buying an additional 212,201 shares during the last quarter. Finally, Los Angeles Capital Management LLC raised its holdings in ResMed by 15.6% in the first quarter. Los Angeles Capital Management LLC now owns 773,159 shares of the medical equipment provider's stock valued at $173,072,000 after acquiring an additional 104,251 shares in the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Peter C. Farrell sold 945 shares of ResMed stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $255.49, for a total transaction of $241,438.05. Following the completion of the sale, the director owned 68,273 shares of the company's stock, valued at approximately $17,443,068.77. This trade represents a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Witte Jan De sold 2,000 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $243.47, for a total value of $486,940.00. Following the completion of the transaction, the director owned 5,806 shares in the company, valued at $1,413,586.82. This trade represents a 25.62% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 27,063 shares of company stock worth $7,058,835 in the last ninety days. Corporate insiders own 0.71% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on RMD. Royal Bank Of Canada raised their price objective on shares of ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. UBS Group upped their price objective on ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a research note 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. Mizuho upped their price target on ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Finally, Stifel Nicolaus boosted their target price on shares of ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a research note on Friday, August 1st. One analyst has rated the stock with a sell rating, four have assigned a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $274.83.

ResMed Stock Performance

Shares of NYSE RMD traded up $2.85 during midday trading on Monday, hitting $287.74. 190,905 shares of the company's stock were exchanged, compared to its average volume of 997,914. ResMed Inc. has a twelve month low of $199.92 and a twelve month high of $293.08. The firm has a market cap of $42.13 billion, a P/E ratio of 30.25, a PEG ratio of 1.91 and a beta of 0.77. The stock's 50 day moving average price is $264.17 and its 200-day moving average price is $242.88. 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 (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating the consensus estimate of $2.47 by $0.08. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The firm's quarterly revenue was up 10.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.08 EPS. Equities research analysts anticipate that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be issued a dividend of $0.60 per share. The ex-dividend date is Wednesday, August 13th. This represents a $2.40 annualized dividend and a dividend yield of 0.8%. This is an increase from ResMed's previous quarterly dividend of $0.53. ResMed's dividend payout ratio is presently 25.24%.

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.