ResMed Inc. $RMD Shares Sold by Congress Asset Management Co.

Key Points

• Congress Asset Management Co. drastically reduced its stake in ResMed Inc. by 99.0%, selling 484,773 shares and retaining only 4,990 shares, valued at approximately $1.29 million.
• ResMed reported a 10.2% increase in revenue year-over-year, totaling $1.35 billion, and surpassed earnings expectations with an EPS of $2.55.
• The company recently declared a quarterly dividend of $0.60, raising the annualized payout to $2.40, with a yield of 0.9%, reflecting a positive change from the previous dividend.

Congress Asset Management Co. reduced its stake in ResMed Inc. (NYSE:RMD - Free Report) by 99.0% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,990 shares of the medical equipment provider's stock after selling 484,773 shares during the period. Congress Asset Management Co.'s holdings in ResMed were worth $1,288,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the stock. Dakota Wealth Management increased its holdings in ResMed by 19.8% in the 2nd quarter. Dakota Wealth Management now owns 18,203 shares of the medical equipment provider's stock valued at $4,696,000 after purchasing an additional 3,014 shares in the last quarter. Public Employees Retirement System of Ohio increased its holdings in ResMed by 1.8% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 54,395 shares of the medical equipment provider's stock valued at $14,034,000 after purchasing an additional 967 shares in the last quarter. Ballentine Partners LLC increased its holdings in ResMed by 15.3% in the 2nd quarter. Ballentine Partners LLC now owns 2,055 shares of the medical equipment provider's stock valued at $530,000 after purchasing an additional 273 shares in the last quarter. Yarbrough Capital LLC increased its holdings in ResMed by 73.8% in the 2nd quarter. Yarbrough Capital LLC now owns 3,252 shares of the medical equipment provider's stock valued at $839,000 after purchasing an additional 1,381 shares in the last quarter. Finally, CHICAGO TRUST Co NA increased its holdings in ResMed by 49.3% in the 2nd quarter. CHICAGO TRUST Co NA now owns 1,363 shares of the medical equipment provider's stock valued at $352,000 after purchasing an additional 450 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Stock Up 1.2%

NYSE:RMD opened at $270.54 on Friday. The company has a market capitalization of $39.61 billion, a price-to-earnings ratio of 28.45, a price-to-earnings-growth ratio of 1.82 and a beta of 0.85. ResMed Inc. has a one year low of $199.92 and a one year high of $293.81. The stock has a 50-day simple moving average of $277.76 and a 200 day simple moving average of $251.87. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44.

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

ResMed Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 18th. Investors of record on Thursday, August 14th were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. This is a positive change from ResMed's previous quarterly dividend of $0.53. The ex-dividend date was Thursday, August 14th. ResMed's payout ratio is 25.24%.

Insider Buying and Selling

In other ResMed news, CEO Michael J. Farrell sold 8,009 shares of ResMed 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 completion of the transaction, the chief executive officer directly owned 455,503 shares in the company, valued at $127,303,978.44. The trade was a 1.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Peter C. Farrell sold 945 shares of ResMed 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 transaction, the director owned 68,273 shares of the company's stock, valued at approximately $17,443,068.77. The trade was a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 19,588 shares of company stock worth $5,289,241. Corporate insiders own 0.71% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on RMD shares. William Blair upgraded ResMed to a "strong-buy" rating in a research note on Friday, August 1st. CLSA upgraded ResMed from a "hold" rating to an "outperform" rating in a research note on Tuesday, September 2nd. Royal Bank Of Canada raised their target price on ResMed from $294.00 to $300.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. UBS Group upgraded ResMed to a "strong-buy" rating in a research note on Tuesday, September 16th. Finally, Citigroup started coverage on ResMed in a research note on Thursday, September 18th. They set a "buy" rating and a $330.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, ResMed currently has an average rating of "Moderate Buy" and an average target price of $294.20.

About ResMed

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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