Osmosis Investment Management UK Ltd Makes New $2.16 Million Investment in ResMed Inc. $RMD

Key Points

• Osmosis Investment Management initiated a $2.16 million ResMed position by purchasing 11,081 shares in the second quarter. Several other institutional investors also opened positions, with institutions and hedge funds owning 54.98% of the stock.
• ResMed’s latest quarterly results exceeded expectations, with adjusted earnings of $2.95 per share and revenue of $1.46 billion, up 8.6% year over year. The company also raised its quarterly dividend to $0.66 per share, yielding approximately 1.1% annually.
• Analyst sentiment remains mixed, with seven Buy ratings and ten Holds producing an overall “Hold” consensus and an average price target of $239.38. Meanwhile, insiders sold nearly 23,000 shares worth about $4.9 million over the past 90 days.

Osmosis Investment Management UK Ltd purchased a new position in ResMed Inc. (NYSE:RMD - Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm purchased 11,081 shares of the medical equipment provider's stock, valued at approximately $2,159,000.

A number of other institutional investors have also made changes to their positions in the stock. Sanctuary Advisors LLC bought a new position in ResMed during the second quarter worth about $746,000. Jericho Financial LLP acquired a new stake in shares of ResMed in the 2nd quarter valued at approximately $4,756,000. Polymer Capital Management HK LTD acquired a new stake in shares of ResMed in the 2nd quarter valued at approximately $972,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in ResMed during the 2nd quarter worth approximately $27,731,000. Finally, Bank of Nova Scotia acquired a new position in ResMed during the second quarter valued at approximately $2,980,000. 54.98% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Wells Fargo & Company reduced their price target on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating on the stock in a research report on Friday, August 7th. Citigroup reiterated a "neutral" rating and set a $235.00 target price (down from $270.00) on shares of ResMed in a report on Sunday, July 12th. Royal Bank Of Canada increased their price target on ResMed from $234.00 to $244.00 and gave the stock a "sector perform" rating in a report on Friday, August 7th. Weiss Ratings upgraded ResMed from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Finally, KeyCorp lowered their target price on ResMed from $260.00 to $255.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. Seven analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $239.38.

ResMed Stock Up 0.5%

ResMed stock opened at $232.57 on Tuesday. The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06. ResMed Inc. has a 1-year low of $180.26 and a 1-year high of $293.58. The company has a fifty day simple moving average of $208.01 and a 200 day simple moving average of $219.69. The company has a market cap of $33.55 billion, a P/E ratio of 22.30, a price-to-earnings-growth ratio of 1.45 and a beta of 0.76.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The business's revenue was up 8.6% compared to the same quarter last year. During the same period last year, the company earned $2.55 earnings per share. Research analysts anticipate that ResMed Inc. will post 12.03 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently announced 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 represents a $2.64 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Thursday, August 20th. This is a boost from ResMed's previous quarterly dividend of $0.60. ResMed's payout ratio is presently 25.31%.

Insiders Place Their Bets

In other ResMed news, Director Peter C. Farrell sold 8,000 shares of ResMed stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the director directly owned 52,773 shares of the company's stock, valued at $11,873,925. The trade was a 13.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the completion of the transaction, the chief executive officer owned 466,256 shares in the company, valued at approximately $95,904,196.64. This represents a 1.06% decrease in their ownership of the stock. 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 90 days, insiders sold 22,973 shares of company stock worth $4,885,436. 0.65% of the stock is owned by company insiders.

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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