ResMed Inc. $RMD Shares Sold by Envestnet Asset Management Inc.

Key Points

• Envestnet Asset Management cut its ResMed stake by 49.5% in the second quarter, selling 50,673 shares and retaining 51,757 shares worth approximately $10.1 million. Institutional investors and hedge funds collectively own 54.98% of the company.
• Analyst sentiment remains mixed, with seven Buy ratings and nine Hold ratings, producing a consensus “Hold” rating and an average price target of $241.69. KeyCorp and RBC raised their targets, while Wells Fargo lowered its target to $215.
• ResMed reported quarterly EPS of $2.95, exceeding estimates, 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, implying a 1.2% annual yield.

Envestnet Asset Management Inc. cut its stake in shares of ResMed Inc. (NYSE:RMD - Free Report) by 49.5% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 51,757 shares of the medical equipment provider's stock after selling 50,673 shares during the quarter. Envestnet Asset Management Inc.'s holdings in ResMed were worth $10,086,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the stock. State Street Corp raised its holdings in shares of ResMed by 0.6% during the second quarter. State Street Corp now owns 6,680,735 shares of the medical equipment provider's stock valued at $1,301,942,000 after acquiring an additional 37,567 shares during the period. Tidal Investments LLC grew its position in ResMed by 21.1% during the 2nd quarter. Tidal Investments LLC now owns 32,332 shares of the medical equipment provider's stock worth $6,301,000 after purchasing an additional 5,627 shares in the last quarter. National Pension Service grew its position in ResMed by 15.5% during the 2nd quarter. National Pension Service now owns 281,465 shares of the medical equipment provider's stock worth $54,852,000 after purchasing an additional 37,680 shares in the last quarter. WINTON GROUP Ltd acquired a new stake in ResMed during the 2nd quarter valued at $1,540,000. Finally, Engineers Gate Manager LP raised its stake in ResMed by 77.8% during the 2nd quarter. Engineers Gate Manager LP now owns 8,127 shares of the medical equipment provider's stock valued at $1,584,000 after purchasing an additional 3,555 shares during the period. 54.98% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on RMD. KeyCorp increased their target price on ResMed from $255.00 to $267.00 and gave the company an "overweight" rating in a report on Monday, August 31st. Royal Bank Of Canada raised ResMed from a "sector perform" rating to an "outperform" rating and upped their price target for the company from $244.00 to $262.00 in a research report on Tuesday, September 15th. Citigroup reissued a "neutral" rating on shares of ResMed in a research note on Thursday, September 10th. Rothschild & Co Redburn began coverage on ResMed in a research report on Wednesday, August 19th. They set a "neutral" rating and a $230.00 price objective for the company. Finally, Wells Fargo & Company lowered their target price on ResMed from $225.00 to $215.00 and set an "equal weight" rating on the stock in a research note on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, ResMed has an average rating of "Hold" and a consensus price target of $241.69.

ResMed Price Performance

Shares of RMD opened at $221.29 on Friday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. The firm has a market cap of $31.92 billion, a PE ratio of 21.22, a PEG ratio of 1.39 and a beta of 0.75. The firm's 50 day moving average price is $223.55 and its 200 day moving average price is $214.09. ResMed Inc. has a twelve month low of $180.26 and a twelve month high of $284.87.

ResMed (NYSE:RMD - Get Free Report) last posted its 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. The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The company's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.55 earnings per share. As a group, research analysts expect that ResMed Inc. will post 12.07 EPS for the current fiscal year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th were given a $0.66 dividend. This is an increase from ResMed's previous quarterly dividend of $0.60. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Thursday, August 20th. ResMed's payout ratio is presently 25.31%.

Insider Activity

In related news, CEO Michael Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $222.44, for a total value of $1,110,198.04. Following the transaction, the chief executive officer directly owned 466,256 shares of the company's stock, valued at approximately $103,713,984.64. This trade represents a 1.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter Farrell sold 970 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total value of $227,688.10. Following the sale, the director directly owned 51,803 shares of the company's stock, valued at $12,159,718.19. The trade was a 1.84% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 23,943 shares of company stock valued at $5,255,268. 0.65% of the stock is currently owned by corporate insiders.

ResMed Company Profile

ResMed Inc NYSE: RMD develops, manufactures and distributes medical equipment and digital health solutions for sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions. Its products include continuous positive airway pressure (CPAP), bilevel and other noninvasive ventilation devices, as well as masks, humidifiers, accessories and diagnostic equipment.

The company also provides cloud-connected software and digital health services that support patient monitoring, therapy management and communication among patients, clinicians and care providers.

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