Nykredit A S Makes New Investment in ResMed Inc. $RMD

Key Points

• Nykredit A/S acquired 338,702 ResMed shares worth approximately $66 million in the second quarter, joining other institutional investors that increased or initiated positions. Institutions now own about 54.98% of ResMed.
• Analysts maintain a cautious outlook, with seven Buy ratings and nine Hold ratings producing a consensus rating of “Hold” and an average price target of $241.69.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 in EPS and $1.46 billion in revenue, while revenue grew 8.6% year over year. The company also raised its quarterly dividend to $0.66 per share, although insiders have recently sold shares under pre-arranged trading plans.

Nykredit A S bought a new stake in shares of ResMed Inc. (NYSE:RMD - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 338,702 shares of the medical equipment provider's stock, valued at approximately $66,006,000. Nykredit A S owned approximately 0.23% of ResMed at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently modified their holdings of the company. Giverny Capital Inc. increased its holdings in shares of ResMed by 68.5% in the second quarter. Giverny Capital Inc. now owns 387,665 shares of the medical equipment provider's stock valued at $75,548,000 after buying an additional 157,660 shares in the last quarter. Paralel Advisors LLC acquired a new position in shares of ResMed in the 2nd quarter worth $2,006,000. Saudi Central Bank raised its position in shares of ResMed by 89.3% during the second quarter. Saudi Central Bank now owns 10,198 shares of the medical equipment provider's stock worth $1,987,000 after purchasing an additional 4,810 shares during the period. Azimuth Capital Investment Management LLC lifted its holdings in shares of ResMed by 0.4% during the second quarter. Azimuth Capital Investment Management LLC now owns 54,490 shares of the medical equipment provider's stock valued at $10,619,000 after purchasing an additional 215 shares during the last quarter. Finally, AlphaGrep UK Ltd purchased a new stake in shares of ResMed during the second quarter valued at $544,000. Institutional investors own 54.98% of the company's stock.

Analysts Set New Price Targets

Several research firms recently commented on RMD. KeyCorp raised their price target on shares of ResMed from $255.00 to $267.00 and gave the stock an "overweight" rating in a report on Monday, August 31st. Jefferies Financial Group decreased their target price on shares of ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, July 10th. Wells Fargo & Company lowered their price target on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating on the stock in a report on Friday, August 7th. Morgan Stanley reiterated an "equal weight" rating and set a $230.00 price objective (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. Finally, The Goldman Sachs Group restated a "buy" rating on shares of ResMed in a research note on Wednesday, July 1st. Seven equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $241.69.

ResMed Price Performance

Shares of RMD opened at $225.35 on Friday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. The stock has a 50 day simple moving average of $218.95 and a 200 day simple moving average of $216.00. ResMed Inc. has a 52-week low of $180.26 and a 52-week high of $284.87. The firm has a market capitalization of $32.51 billion, a PE ratio of 21.61, a P/E/G ratio of 1.44 and a beta of 0.77.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, topping the consensus estimate of $2.89 by $0.06. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The business had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the prior year, the company posted $2.55 earnings per share. The firm's revenue was up 8.6% on a year-over-year basis. Sell-side analysts predict that ResMed Inc. will post 12.02 EPS for the current fiscal year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, August 20th will be issued a dividend of $0.66 per share. This is a boost from ResMed's previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.64 annualized dividend and a dividend yield of 1.2%. ResMed's payout ratio is presently 25.31%.

Insiders Place Their Bets

In other ResMed news, Director Peter C. Farrell sold 970 shares of ResMed stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total transaction of $227,688.10. Following the transaction, the director directly owned 51,803 shares of the company's stock, valued at approximately $12,159,718.19. The trade was a 1.84% decrease in their position. The sale was disclosed in a filing 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, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $222.44, for a total transaction of $1,110,198.04. Following the sale, the chief executive officer directly owned 466,256 shares of the company's stock, valued at $103,713,984.64. This represents a 1.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 23,943 shares of company stock worth $5,255,268. Insiders own 0.65% of the company's stock.

ResMed Company Profile

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.

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