Rakuten Investment Management Inc. Takes Position in ResMed Inc. $RMD

Key Points

• Rakuten Investment Management bought 23,761 ResMed shares worth approximately $4.7 million in the second quarter. Institutional investors collectively own nearly 55% of ResMed’s outstanding stock.
• ResMed reported quarterly EPS of $2.95, exceeding estimates of $2.89, while revenue rose 8.6% year over year to $1.46 billion. The company also increased its quarterly dividend from $0.60 to $0.66 per share.
• Analyst sentiment remains mixed, with seven Buy ratings and ten Hold ratings, producing a consensus rating of Hold and an average price target of $239.38. Insiders have sold 22,973 shares worth about $4.9 million over the past 90 days.

Rakuten Investment Management Inc. bought a new position in ResMed Inc. (NYSE:RMD - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 23,761 shares of the medical equipment provider's stock, valued at approximately $4,715,000.

A number of other institutional investors and hedge funds have also modified their holdings of the business. BlackRock Inc. purchased a new stake in ResMed in the 2nd quarter worth about $2,400,375,000. Bank of New York Mellon Corp purchased a new position in ResMed during the 2nd quarter valued at about $818,030,000. Deutsche Bank AG purchased a new position in ResMed during the 2nd quarter valued at about $257,692,000. First Trust Advisors LP increased its holdings in shares of ResMed by 240.9% in the 4th quarter. First Trust Advisors LP now owns 1,517,592 shares of the medical equipment provider's stock valued at $365,542,000 after purchasing an additional 1,072,394 shares during the period. Finally, Norges Bank acquired a new position in shares of ResMed in the 4th quarter valued at about $249,068,000. Hedge funds and other institutional investors own 54.98% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on RMD. Morgan Stanley restated an "equal weight" rating and set a $230.00 price target (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. KeyCorp dropped their price objective on shares of ResMed from $260.00 to $255.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. UBS Group reiterated a "buy" rating and issued a $300.00 target price on shares of ResMed in a research report on Tuesday, July 21st. Wells Fargo & Company decreased their target price on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a research note on Friday, August 7th. Finally, Rothschild & Co Redburn initiated coverage on shares of ResMed in a report on Wednesday, August 19th. They set a "neutral" rating and a $230.00 price target on the stock. Seven analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat, ResMed presently has an average rating of "Hold" and a consensus target price of $239.38.

ResMed Price Performance

NYSE RMD opened at $240.47 on Monday. The company has a quick ratio of 2.42, a current ratio of 3.10 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $34.69 billion, a PE ratio of 23.06, a price-to-earnings-growth ratio of 1.51 and a beta of 0.76. The company has a 50 day moving average price of $211.81 and a two-hundred day moving average price of $218.78. ResMed Inc. has a 12-month low of $180.26 and a 12-month high of $284.87.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly 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 company had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the business posted $2.55 EPS. ResMed's quarterly revenue was up 8.6% on a year-over-year basis. As a group, equities analysts predict that ResMed Inc. will post 12.03 earnings per share for the current fiscal year.

ResMed Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.66 per share. This represents a $2.64 annualized dividend and a yield of 1.1%. This is an increase from ResMed's previous quarterly dividend of $0.60. The ex-dividend date is Thursday, August 20th. ResMed's dividend payout ratio is 25.31%.

Insider Activity

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source