ResMed Inc. $RMD Shares Acquired by Wellington Management Group LLP

Key Points

• Wellington Management Group LLP significantly increased its stake in ResMed Inc., boosting its holdings by 549.7% in the first quarter to a total of 58,200 shares, valued at approximately $13 million.
• Multiple analysts raised their price targets for ResMed, with Stifel Nicolaus setting a new target of $270 and Morgan Stanley targeting $286, reflecting positive sentiment in the company's stock performance.
• ResMed recently announced a dividend increase from $0.53 to $0.60 per share, with the payment scheduled for September 18th, indicating the company's commitment to returning value to shareholders.

Wellington Management Group LLP boosted its position in ResMed Inc. (NYSE:RMD - Free Report) by 549.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 58,200 shares of the medical equipment provider's stock after purchasing an additional 49,242 shares during the quarter. Wellington Management Group LLP's holdings in ResMed were worth $13,028,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in RMD. Vanguard Group Inc. grew its holdings in shares of ResMed by 1.8% during the first quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider's stock worth $4,139,815,000 after buying an additional 320,240 shares in the last quarter. Northern Trust Corp boosted its position in ResMed by 2.5% during the first quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider's stock worth $390,516,000 after acquiring an additional 41,951 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in ResMed by 4.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider's stock worth $223,431,000 after acquiring an additional 41,108 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in ResMed by 28.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 954,612 shares of the medical equipment provider's stock valued at $218,310,000 after acquiring an additional 212,201 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in shares of ResMed by 6.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 793,760 shares of the medical equipment provider's stock worth $177,652,000 after purchasing an additional 51,348 shares during the period. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

RMD has been the subject of a number of recent analyst reports. Stifel Nicolaus lifted their price objective on ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a research report on Friday, August 1st. Morgan Stanley set a $286.00 price target on ResMed and gave the company an "overweight" rating in a report on Tuesday, May 20th. KeyCorp upped their price objective on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Royal Bank Of Canada increased their price objective on shares of ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Finally, Mizuho raised their target price on shares of ResMed from $270.00 to $290.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $274.83.

ResMed Price Performance

RMD opened at $281.82 on Thursday. ResMed Inc. has a 52-week low of $199.92 and a 52-week high of $293.81. The company has a 50 day moving average of $269.91 and a two-hundred day moving average of $245.47. The company has a market cap of $41.26 billion, a P/E ratio of 29.63, a P/E/G ratio of 1.91 and a beta of 0.77. The company has a quick ratio of 2.53, a current ratio of 3.44 and a debt-to-equity ratio of 0.11.

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

ResMed Increases Dividend

The business 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 dividend of $0.60 per share. This is a boost from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, August 13th. ResMed's payout ratio is presently 25.24%.

Insider Transactions at ResMed

In other ResMed news, Director Peter C. Farrell sold 945 shares of the company's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $255.49, for a total value of $241,438.05. Following the completion of the transaction, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John Hernandez sold 2,575 shares of the stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $287.10, for a total transaction of $739,282.50. Following the completion of the sale, the director directly owned 4,045 shares of the company's stock, valued at $1,161,319.50. This trade represents a 38.90% decrease in their position. The disclosure for this sale can be found here. Insiders sold 27,638 shares of company stock valued at $7,311,177 over the last quarter. 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.

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