Stephens Investment Management Group LLC Decreases Position in ResMed Inc. $RMD

Key Points

• Stephens Investment Management Group reduced its ResMed stake by 4.1% in the fourth quarter, selling 11,631 shares and ending with 273,388 shares valued at about $65.9 million.
• Other institutional investors were mixed but generally supportive, with firms like Vanguard, Swedbank, and Nordea increasing their holdings; institutions still own 54.98% of ResMed.
• ResMed beat quarterly expectations with $2.86 EPS and $1.43 billion in revenue, while analysts maintain a Moderate Buy consensus and a $286.18 average price target.

Stephens Investment Management Group LLC lessened its holdings in ResMed Inc. (NYSE:RMD - Free Report) by 4.1% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 273,388 shares of the medical equipment provider's stock after selling 11,631 shares during the period. Stephens Investment Management Group LLC owned approximately 0.19% of ResMed worth $65,851,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in ResMed by 1.6% in the 3rd quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock valued at $5,211,940,000 after buying an additional 293,515 shares during the period. Swedbank AB boosted its position in ResMed by 103.1% in the 4th quarter. Swedbank AB now owns 1,102,476 shares of the medical equipment provider's stock valued at $265,553,000 after buying an additional 559,765 shares during the period. Nordea Investment Management AB boosted its position in ResMed by 37.2% in the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock valued at $262,027,000 after buying an additional 294,124 shares during the period. Dimensional Fund Advisors LP boosted its position in ResMed by 6.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 846,134 shares of the medical equipment provider's stock valued at $231,587,000 after buying an additional 49,540 shares during the period. Finally, Caisse de depot et placement du Quebec boosted its position in ResMed by 28.0% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 565,901 shares of the medical equipment provider's stock valued at $154,904,000 after buying an additional 123,781 shares during the period. Hedge funds and other institutional investors own 54.98% of the company's stock.

Insider Transactions at ResMed

In related news, CEO Michael J. Farrell sold 4,991 shares of the business's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $207.82, for a total transaction of $1,037,229.62. Following the sale, the chief executive officer owned 466,223 shares of the company's stock, valued at approximately $96,890,463.86. The trade was a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 18,973 shares of company stock worth $4,386,031. 0.65% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on RMD. Citigroup decreased their price objective on shares of ResMed from $345.00 to $340.00 and set a "buy" rating for the company in a research report on Thursday, April 9th. Wells Fargo & Company cut their price target on shares of ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Royal Bank Of Canada lifted their price target on shares of ResMed from $314.00 to $321.00 and gave the stock an "outperform" rating in a research note on Friday, May 1st. Weiss Ratings lowered shares of ResMed from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, March 19th. Finally, Evercore set a $255.00 price target on shares of ResMed and gave the stock an "outperform" rating in a research note on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, ResMed currently has a consensus rating of "Moderate Buy" and a consensus price target of $286.18.

ResMed Stock Down 0.2%

RMD stock opened at $202.03 on Friday. The company has a market cap of $29.43 billion, a P/E ratio of 19.48, a P/E/G ratio of 1.29 and a beta of 0.84. ResMed Inc. has a 52 week low of $198.61 and a 52 week high of $293.81. The company's 50-day moving average price is $223.93 and its 200 day moving average price is $242.52. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, topping analysts' consensus estimates of $2.79 by $0.07. The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The firm's revenue was up 10.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.37 earnings per share. On average, research analysts expect that ResMed Inc. will post 11.13 earnings per share for the current fiscal year.

ResMed Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, May 14th will be issued a dividend of $0.60 per share. The ex-dividend date of this dividend is Thursday, May 14th. This represents a $2.40 dividend on an annualized basis and a yield of 1.2%. ResMed's payout ratio is currently 23.14%.

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.

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