Prudential PLC Raises Position in ResMed Inc. $RMD

Key Points

• Prudential PLC significantly increased its stake in ResMed, boosting holdings by 117.6% in the fourth quarter to 45,705 shares valued at about $11.0 million.
• ResMed’s latest quarterly results topped expectations, with EPS of $2.86 versus $2.79 expected and revenue of $1.43 billion, up 10.8% year over year.
• The company continues to return cash to shareholders with a quarterly dividend of $0.60 per share, and analysts maintain a consensus Moderate Buy rating with an average price target of $286.18.

Prudential PLC raised its stake in ResMed Inc. (NYSE:RMD - Free Report) by 117.6% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 45,705 shares of the medical equipment provider's stock after purchasing an additional 24,703 shares during the quarter. Prudential PLC's holdings in ResMed were worth $11,009,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of RMD. Terra Nova Asset Management LLC grew its holdings in shares of ResMed by 0.6% in the third quarter. Terra Nova Asset Management LLC now owns 7,805 shares of the medical equipment provider's stock valued at $2,136,000 after acquiring an additional 46 shares in the last quarter. IMA Advisory Services Inc. grew its holdings in shares of ResMed by 52.7% in the third quarter. IMA Advisory Services Inc. now owns 139 shares of the medical equipment provider's stock valued at $38,000 after acquiring an additional 48 shares in the last quarter. Occidental Asset Management LLC grew its holdings in shares of ResMed by 3.0% in the fourth quarter. Occidental Asset Management LLC now owns 1,699 shares of the medical equipment provider's stock valued at $409,000 after acquiring an additional 49 shares in the last quarter. Wedmont Private Capital grew its holdings in shares of 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 acquiring an additional 57 shares in the last quarter. Finally, New Wave Wealth Advisors LLC grew its holdings in shares of ResMed by 3.0% in the fourth quarter. New Wave Wealth Advisors LLC now owns 1,956 shares of the medical equipment provider's stock valued at $471,000 after acquiring an additional 57 shares in the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $251.03, for a total value of $1,252,890.73. Following the completion of the transaction, the chief executive officer directly owned 466,223 shares of the company's stock, valued at $117,035,959.69. 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. Also, Director Peter C. Farrell sold 2,000 shares of the firm's stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total value of $450,000.00. The SEC filing for this sale provides additional information. Insiders sold 16,973 shares of company stock valued at $3,865,591 over the last ninety days. Corporate insiders own 0.65% of the company's stock.

ResMed Price Performance

Shares of NYSE RMD opened at $195.95 on Friday. The stock has a fifty day simple moving average of $213.11 and a two-hundred day simple moving average of $237.21. ResMed Inc. has a 1-year low of $180.26 and a 1-year high of $293.81. The firm has a market cap of $28.42 billion, a price-to-earnings ratio of 18.90, a price-to-earnings-growth ratio of 1.24 and a beta of 0.80. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings data 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. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The business had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.42 billion. During the same period in the prior year, the company earned $2.37 earnings per share. ResMed's revenue was up 10.8% compared to the same quarter last year. Analysts anticipate that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th will be issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, May 14th. ResMed's dividend payout ratio (DPR) is presently 23.14%.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on RMD shares. Royal Bank Of Canada upped their target price on ResMed from $314.00 to $321.00 and gave the company an "outperform" rating in a report on Friday, May 1st. Evercore set a $255.00 target price on ResMed and gave the company an "outperform" rating in a report on Monday, April 13th. Wall Street Zen lowered ResMed from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Weiss Ratings lowered ResMed from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 22nd. Finally, Robert W. Baird set a $225.00 price objective on ResMed in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $286.18.

ResMed Company 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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