Wellington Management Group LLP Grows Stake in ResMed Inc. $RMD

Key Points

• Wellington Management increased its ResMed stake by 36.1% in the second quarter, bringing its holdings to 81,184 shares valued at approximately $15.8 million. Institutional investors collectively own 54.98% of the company.
• ResMed reported quarterly EPS of $2.95, exceeding estimates of $2.89, while revenue rose 8.6% year over year to $1.46 billion. The company also raised its quarterly dividend to $0.66 per share, implying a 1.2% annual yield.
• Analyst sentiment remains mixed, with six Buy ratings and ten Holds; the consensus rating is Hold with an average price target of $240.31. ResMed shares opened at $228.25, while insiders sold roughly $4.15 million of stock during the last quarter.

Wellington Management Group LLP raised its holdings in shares of ResMed Inc. (NYSE:RMD - Free Report) by 36.1% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 81,184 shares of the medical equipment provider's stock after purchasing an additional 21,517 shares during the period. Wellington Management Group LLP owned 0.06% of ResMed worth $15,821,000 at the end of the most recent quarter.

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

ResMed Trading Down 0.0%

RMD stock opened at $228.25 on Tuesday. ResMed Inc. has a 12-month low of $180.26 and a 12-month high of $284.87. The business's 50-day moving average is $216.10 and its 200 day moving average is $217.79. The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06. The stock has a market cap of $32.93 billion, a price-to-earnings ratio of 21.88, a PEG ratio of 1.44 and a beta of 0.77.

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 (EPS) for the quarter, topping analysts' consensus estimates of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The firm had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same period in the previous year, the company posted $2.55 earnings per share. The business's revenue was up 8.6% on a year-over-year basis. On average, sell-side analysts anticipate that ResMed Inc. will post 12.02 EPS for the current fiscal year.

ResMed Increases Dividend

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

Analyst Ratings Changes

Several equities analysts have recently issued reports on RMD shares. UBS Group restated a "buy" rating and set a $300.00 price objective on shares of ResMed in a report on Tuesday, July 21st. Wells Fargo & Company lowered their target price on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a research note on Friday, August 7th. The Goldman Sachs Group reissued a "buy" rating on shares of ResMed in a research report on Wednesday, July 1st. Mizuho decreased their price target on shares of ResMed from $235.00 to $220.00 and set an "outperform" rating for the company in a report on Wednesday, July 15th. Finally, Morgan Stanley reiterated an "equal weight" rating and set a $230.00 price objective (down from $286.00) on shares of ResMed in a research note on Wednesday, June 17th. Six equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $240.31.

Insider Transactions at ResMed

In other news, CEO Michael Farrell sold 4,991 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $205.69, for a total value of $1,026,598.79. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter Farrell sold 970 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total transaction of $227,688.10. Following the transaction, the director owned 51,803 shares in the company, valued at $12,159,718.19. The trade was a 1.84% 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. Insiders sold 18,952 shares of company stock valued at $4,145,070 over the last quarter. Company insiders own 0.65% of the company's stock.

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.

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.