OP Asset Management Ltd Makes New Investment in ResMed Inc. $RMD

Key Points

• OP Asset Management opened a new position in ResMed during the first quarter, buying 14,773 shares worth about $3.3 million.
• ResMed’s latest quarterly results beat expectations, with EPS of $2.86 and revenue of $1.43 billion, while revenue rose 10.8% year over year.
• Insiders have been selling shares, including CEO Michael J. Farrell’s recent sale of 4,991 shares, even as analysts remain generally bullish with a Moderate Buy consensus and a $270.82 average price target.

OP Asset Management Ltd bought a new stake in ResMed Inc. (NYSE:RMD - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 14,773 shares of the medical equipment provider's stock, valued at approximately $3,316,000.

Other large investors have also modified their holdings of the company. Terra Nova Asset Management LLC increased its stake in ResMed by 0.6% in the 3rd quarter. Terra Nova Asset Management LLC now owns 7,805 shares of the medical equipment provider's stock valued at $2,136,000 after buying an additional 46 shares during the period. Occidental Asset Management LLC increased its stake in shares of ResMed by 3.0% during the fourth quarter. Occidental Asset Management LLC now owns 1,699 shares of the medical equipment provider's stock worth $409,000 after acquiring an additional 49 shares during the period. Kera Capital Partners Inc. increased its stake in shares of ResMed by 6.6% during the fourth quarter. Kera Capital Partners Inc. now owns 841 shares of the medical equipment provider's stock worth $217,000 after acquiring an additional 52 shares during the period. Andina Capital Management LLC raised its holdings in ResMed by 2.9% during the fourth quarter. Andina Capital Management LLC now owns 1,988 shares of the medical equipment provider's stock worth $479,000 after purchasing an additional 56 shares in the last quarter. Finally, Wedmont Private Capital lifted its position in ResMed by 2.7% in the fourth quarter. Wedmont Private Capital now owns 2,183 shares of the medical equipment provider's stock valued at $542,000 after purchasing an additional 57 shares during the period. Hedge funds and other institutional investors own 54.98% of the company's stock.

Insiders Place Their Bets

In related news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $193.96, for a total transaction of $968,054.36. Following the sale, the chief executive officer owned 466,256 shares of the company's stock, valued at $90,435,013.76. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of the company's 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 disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 16,973 shares of company stock worth $3,580,754. 0.65% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on RMD shares. Evercore set a $255.00 target price on ResMed and gave the stock an "outperform" rating in a research report on Monday, April 13th. KeyCorp dropped their price objective on ResMed from $290.00 to $266.00 and set an "overweight" rating on the stock in a report on Monday, June 22nd. Robert W. Baird set a $225.00 price objective on ResMed in a research report on Friday, May 1st. Weiss Ratings downgraded ResMed from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 22nd. Finally, Royal Bank Of Canada upped their price target on shares of ResMed from $314.00 to $321.00 and gave the stock an "outperform" rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $270.82.

ResMed Trading Up 1.0%

Shares of RMD stock opened at $200.49 on Friday. The stock has a market cap of $29.08 billion, a P/E ratio of 19.33, a P/E/G ratio of 1.28 and a beta of 0.80. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. ResMed Inc. has a fifty-two week low of $180.26 and a fifty-two week high of $293.81. The business has a fifty day simple moving average of $203.31 and a 200-day simple moving average of $231.18.

ResMed (NYSE:RMD - Get Free Report) last posted its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.79 by $0.07. The firm had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The firm's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period last year, the firm posted $2.37 EPS. On average, analysts forecast that ResMed Inc. will post 11.13 earnings per share for the current fiscal year.

ResMed Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, May 14th were paid a $0.60 dividend. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $2.40 dividend on an annualized basis and a yield of 1.2%. ResMed's dividend payout ratio is presently 23.14%.

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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