Saudi Central Bank Increases Position in ResMed Inc. $RMD

Key Points

• Saudi Central Bank nearly doubled its ResMed stake in the second quarter, increasing holdings by 89.3% to 10,198 shares valued at approximately $1.99 million. Institutional investors collectively own 54.98% of ResMed.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 in EPS versus the $2.89 consensus, while revenue rose 8.6% year over year to $1.46 billion.
• Analysts maintain a consensus “Hold” rating after several firms lowered price targets; the average target is $240.31. ResMed also raised its quarterly dividend to $0.66 per share from $0.60.

Saudi Central Bank lifted its stake in ResMed Inc. (NYSE:RMD - Free Report) by 89.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 10,198 shares of the medical equipment provider's stock after purchasing an additional 4,810 shares during the period. Saudi Central Bank's holdings in ResMed were worth $1,987,000 as of its most recent SEC filing.

A number of other institutional investors have also recently added to or reduced their stakes in RMD. Azimuth Capital Investment Management LLC grew its position in ResMed by 0.4% during the second quarter. Azimuth Capital Investment Management LLC now owns 54,490 shares of the medical equipment provider's stock worth $10,619,000 after buying an additional 215 shares during the period. AlphaGrep UK Ltd acquired a new stake in shares of ResMed during the 2nd quarter valued at approximately $544,000. OceanIQ Capital LLC acquired a new stake in shares of ResMed during the 2nd quarter valued at approximately $574,000. Syon Capital LLC boosted its stake in shares of ResMed by 56.0% during the 2nd quarter. Syon Capital LLC now owns 5,311 shares of the medical equipment provider's stock worth $1,035,000 after acquiring an additional 1,907 shares in the last quarter. Finally, NEOS Investment Management LLC boosted its stake in shares of ResMed by 13.9% during the 2nd quarter. NEOS Investment Management LLC now owns 23,606 shares of the medical equipment provider's stock worth $4,600,000 after acquiring an additional 2,887 shares in the last quarter. Hedge funds and other institutional investors own 54.98% of the company's stock.

Insider Transactions at ResMed

In other ResMed news, CEO Michael Farrell sold 4,991 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the sale, the chief executive officer directly owned 466,223 shares of the company's stock, valued at $101,893,036.65. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a document filed 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 8,000 shares of ResMed stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director owned 52,773 shares of the company's stock, valued at approximately $11,873,925. This trade represents a 13.16% decrease in their ownership of the stock. 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 sold 18,952 shares of company stock worth $4,145,070. 0.65% of the stock is owned by insiders.

Analysts Set New Price Targets

Several research firms recently weighed in on RMD. Jefferies Financial Group dropped their price objective on ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, July 10th. Piper Sandler decreased their target price on ResMed from $233.00 to $225.00 and set a "neutral" rating on the stock in a research report on Friday, August 7th. 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 report on Friday, August 7th. Robert W. Baird set a $213.00 price target on ResMed in a research report on Friday, August 7th. Finally, Weiss Ratings raised ResMed from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Six analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $240.31.

ResMed Trading Down 0.0%

Shares of ResMed stock opened at $228.25 on Tuesday. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $284.87. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. The business has a 50 day moving average price of $216.10 and a 200 day moving average price of $217.79. The company has a market capitalization of $32.93 billion, a P/E ratio of 21.88, a P/E/G ratio of 1.44 and a beta of 0.77.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter last year, the business posted $2.55 earnings per share. ResMed's revenue was up 8.6% compared to the same quarter last year. Sell-side analysts anticipate that ResMed Inc. will post 12.02 EPS for the current fiscal year.

ResMed Increases Dividend

The company 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 $0.66 dividend. This is a positive change from ResMed's previous quarterly dividend of $0.60. The ex-dividend date is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a yield of 1.2%. ResMed's payout ratio is currently 25.31%.

ResMed 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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