Strategic Global Advisors LLC Takes $3.86 Million Position in ResMed Inc. $RMD

Key Points

• Strategic Global Advisors acquired 19,794 ResMed shares worth approximately $3.86 million, while institutional investors collectively own 54.98% of the company.
• ResMed reported quarterly earnings of $2.95 per share, beating estimates by $0.06, with revenue up 8.6% year over year to $1.46 billion.
• The company raised its quarterly dividend from $0.60 to $0.66 per share. Analysts remain mixed, resulting in a consensus “Hold” rating and an average price target of $239.38.

Strategic Global Advisors LLC purchased a new position in shares of ResMed Inc. (NYSE:RMD - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 19,794 shares of the medical equipment provider's stock, valued at approximately $3,857,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. International Assets Investment Management LLC acquired a new stake in ResMed in the 4th quarter valued at about $25,000. Bell Investment Advisors Inc acquired a new position in ResMed during the second quarter worth about $26,000. Imprint Wealth LLC acquired a new position in ResMed during the third quarter worth about $26,000. WFA of San Diego LLC purchased a new stake in shares of ResMed in the second quarter valued at about $26,000. Finally, Sunbelt Securities Inc. purchased a new stake in shares of ResMed in the third quarter valued at about $31,000. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Stock Down 0.4%

Shares of NYSE RMD opened at $235.73 on Thursday. The firm has a market cap of $34.00 billion, a P/E ratio of 22.60, a price-to-earnings-growth ratio of 1.48 and a beta of 0.76. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. ResMed Inc. has a 1 year low of $180.26 and a 1 year high of $285.08. The firm's 50 day moving average price is $209.84 and its 200 day moving average price is $219.29.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating 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 period in the previous year, the firm posted $2.55 EPS. ResMed's revenue was up 8.6% on a year-over-year basis. As a group, sell-side analysts anticipate that ResMed Inc. will post 12.03 earnings per share for the current year.

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be 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 1.1%. The ex-dividend date of this dividend is Thursday, August 20th. ResMed's dividend payout ratio (DPR) is presently 25.31%.

Insider Buying and Selling at ResMed

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $205.69, for a total value of $1,026,598.79. Following the sale, the chief executive officer directly owned 466,256 shares of the company's stock, valued at approximately $95,904,196.64. This trade represents a 1.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of ResMed stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total value of $1,800,000.00. Following the completion of the sale, the director owned 52,773 shares of the company's stock, valued at $11,873,925. This trade represents a 13.16% 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. Insiders sold 22,973 shares of company stock valued at $4,885,436 over the last quarter. Insiders own 0.65% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on RMD shares. Citigroup reiterated a "neutral" rating and issued a $235.00 price target (down from $270.00) on shares of ResMed in a research report on Sunday, July 12th. Rothschild & Co Redburn initiated coverage on ResMed in a research note on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 target price on the stock. KeyCorp dropped their price target on ResMed from $260.00 to $255.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Piper Sandler cut their price target on ResMed from $233.00 to $225.00 and set a "neutral" rating for the company in a report on Friday, August 7th. Finally, UBS Group reiterated a "buy" rating and set a $300.00 price objective on shares of ResMed in a research report on Tuesday, July 21st. Seven equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $239.38.

About ResMed

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.

Want to see what other hedge funds are holding RMD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ResMed Inc. (NYSE:RMD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source