Watchman Group Inc. Buys New Holdings in ResMed Inc. $RMD

Key Points

• Watchman Group Inc. invested approximately $2.91 million in ResMed Inc., acquiring 13,011 shares during the first quarter of 2023.
• ResMed increased its quarterly dividend from $0.53 to $0.60, reflecting a 0.8% yield and a payout ratio of 22.29%.
• Analysts have a consensus rating of "Moderate Buy" for ResMed's stock, with price targets ranging from $270 to $298.

Watchman Group Inc. purchased a new stake in shares of ResMed Inc. (NYSE:RMD - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 13,011 shares of the medical equipment provider's stock, valued at approximately $2,913,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Ballentine Partners LLC grew its holdings in shares of ResMed by 6.3% during the 1st quarter. Ballentine Partners LLC now owns 1,782 shares of the medical equipment provider's stock valued at $399,000 after acquiring an additional 105 shares in the last quarter. Golden State Wealth Management LLC grew its holdings in shares of ResMed by 384.8% during the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock valued at $36,000 after acquiring an additional 127 shares in the last quarter. Exchange Traded Concepts LLC grew its holdings in shares of ResMed by 393.0% during the 1st quarter. Exchange Traded Concepts LLC now owns 2,529 shares of the medical equipment provider's stock valued at $566,000 after acquiring an additional 2,016 shares in the last quarter. MML Investors Services LLC lifted its stake in ResMed by 31.9% in the fourth quarter. MML Investors Services LLC now owns 11,468 shares of the medical equipment provider's stock valued at $2,623,000 after acquiring an additional 2,771 shares during the last quarter. Finally, Private Advisor Group LLC lifted its stake in ResMed by 18.3% in the first quarter. Private Advisor Group LLC now owns 3,244 shares of the medical equipment provider's stock valued at $726,000 after acquiring an additional 501 shares during the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Stock Performance

Shares of NYSE:RMD traded up $2.9890 during midday trading on Wednesday, hitting $289.0290. The company's stock had a trading volume of 812,492 shares, compared to its average volume of 1,154,322. The stock has a market capitalization of $42.32 billion, a price-to-earnings ratio of 30.39, a PEG ratio of 1.92 and a beta of 0.77. The stock's 50 day simple moving average is $266.30 and its 200 day simple moving average is $243.84. ResMed Inc. has a fifty-two week low of $199.92 and a fifty-two week high of $293.08. 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 issued its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.08. The company had revenue of $1.35 billion for 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 firm's revenue was up 10.2% compared to the same quarter last year. During the same period last year, the business posted $2.08 earnings per share. As a group, research analysts anticipate that ResMed Inc. will post 9.47 earnings per share for the current year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be given a $0.60 dividend. This is an increase from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, August 13th. ResMed's dividend payout ratio (DPR) is 25.24%.

Insider Activity at ResMed

In other ResMed news, Director Peter C. Farrell sold 945 shares of the stock in a transaction 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 sale, the director directly owned 68,273 shares of the company's stock, valued at $17,443,068.77. This represents a 1.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $279.48, for a total transaction of $2,238,355.32. Following the completion of the sale, the chief executive officer directly owned 455,503 shares of the company's stock, valued at approximately $127,303,978.44. This trade represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 27,638 shares of company stock worth $7,311,177 in the last ninety days. 0.71% of the stock is currently owned by insiders.

Analysts Set New Price Targets

RMD has been the subject of a number of analyst reports. KeyCorp lifted their target price on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Wall Street Zen cut shares of ResMed from a "buy" rating to a "hold" rating in a research note on Sunday, August 10th. JPMorgan Chase & Co. lifted their target price on shares of ResMed from $286.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, April 24th. UBS Group lifted their target price on shares of ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, William Blair upgraded shares of ResMed to a "strong-buy" rating in a research note on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $274.83.

ResMed Company Profile

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.