Price T Rowe Associates Inc. MD Purchases 30,692 Shares of ResMed Inc. $RMD

Key Points

• Price T Rowe Associates Inc. MD increased its stake in ResMed Inc. by 9.9%, purchasing 30,692 additional shares, now holding a total of 341,663 shares worth approximately $76.48 million.
• ResMed recently announced an increase in its quarterly dividend from $0.53 to $0.60 per share, with a dividend yield of 0.8% and a payout ratio of 25.24%.
• In its latest quarterly earnings report, ResMed exceeded analyst expectations with an EPS of $2.55 and revenue of $1.35 billion, marking a 10.2% year-over-year growth.

Price T Rowe Associates Inc. MD raised its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 9.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 341,663 shares of the medical equipment provider's stock after acquiring an additional 30,692 shares during the period. Price T Rowe Associates Inc. MD owned about 0.23% of ResMed worth $76,482,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Martingale Asset Management L P grew its stake in ResMed by 77.6% in the first quarter. Martingale Asset Management L P now owns 15,678 shares of the medical equipment provider's stock valued at $3,510,000 after acquiring an additional 6,851 shares during the period. Erste Asset Management GmbH acquired a new position in shares of ResMed during the first quarter worth about $4,185,000. Credit Agricole S A boosted its position in shares of ResMed by 3.7% during the first quarter. Credit Agricole S A now owns 78,293 shares of the medical equipment provider's stock worth $17,526,000 after buying an additional 2,812 shares during the period. Banco Bilbao Vizcaya Argentaria S.A. boosted its position in shares of ResMed by 2.4% during the first quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 48,166 shares of the medical equipment provider's stock worth $10,780,000 after buying an additional 1,115 shares during the period. Finally, Groupama Asset Managment acquired a new position in shares of ResMed during the first quarter worth about $247,000. 54.98% of the stock is owned by institutional investors and hedge funds.

ResMed Stock Down 2.3%

RMD traded down $6.60 on Thursday, hitting $275.36. 1,298,974 shares of the company were exchanged, compared to its average volume of 1,046,229. ResMed Inc. has a 12 month low of $199.92 and a 12 month high of $293.81. The company has a market cap of $40.32 billion, a PE ratio of 28.95, a PEG ratio of 1.88 and a beta of 0.77. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. The stock's fifty day moving average is $270.40 and its 200-day moving average is $245.72.

ResMed (NYSE:RMD - Get Free Report) last released its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.08. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. ResMed had a return on equity of 25.62% and a net margin of 27.22%.ResMed's revenue was up 10.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.08 earnings per share. Equities research analysts predict that ResMed Inc. will post 9.47 EPS for the current fiscal year.

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th will be paid a $0.60 dividend. This is a positive change from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, August 14th. ResMed's dividend payout ratio is currently 25.24%.

Wall Street Analyst Weigh In

RMD has been the subject of several recent research reports. William Blair raised ResMed to a "strong-buy" rating in a research report on Friday, August 1st. Stifel Nicolaus upped their price objective on ResMed from $240.00 to $270.00 and gave the stock a "hold" rating in a research report on Friday, August 1st. Royal Bank Of Canada upped their price objective on ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. KeyCorp upped their price objective on ResMed from $274.00 to $298.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, UBS Group upped their price objective on ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, ResMed has a consensus rating of "Moderate Buy" and an average target price of $274.83.

Insider Buying and Selling at ResMed

In other ResMed news, CEO Michael J. Farrell sold 8,009 shares of the company's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total value of $2,238,355.32. Following the sale, the chief executive officer owned 455,503 shares in the company, valued at $127,303,978.44. This represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Peter C. Farrell sold 945 shares of the company's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total value of $241,438.05. Following the completion of the sale, the director owned 68,273 shares in the company, valued at $17,443,068.77. This represents a 1.37% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 27,638 shares of company stock worth $7,311,177 over the last 90 days. Company insiders own 0.71% of the company's stock.

ResMed Profile

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.