Motley Fool Asset Management LLC Grows Holdings in ResMed Inc. $RMD

Motley Fool Asset Management LLC increased its position in ResMed Inc. (NYSE:RMD) by 8.8% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 9,357 shares of the medical equipment provider’s stock after acquiring an additional 753 shares during the quarter. Motley Fool Asset Management LLC’s holdings in ResMed were worth $2,414,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in ResMed by 1.8% in the 1st quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider’s stock worth $4,139,815,000 after acquiring an additional 320,240 shares in the last quarter. Northern Trust Corp boosted its stake in ResMed by 2.5% in the 1st quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider’s stock worth $390,516,000 after purchasing an additional 41,951 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in ResMed by 4.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider’s stock worth $223,431,000 after purchasing an additional 41,108 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in ResMed by 2.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 977,401 shares of the medical equipment provider’s stock worth $218,791,000 after purchasing an additional 22,789 shares during the period. Finally, Dimensional Fund Advisors LP boosted its stake in ResMed by 6.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 793,760 shares of the medical equipment provider’s stock worth $177,652,000 after purchasing an additional 51,348 shares during the period. 54.98% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have weighed in on RMD. Wall Street Zen downgraded ResMed from a “buy” rating to a “hold” rating in a research note on Sunday, August 10th. Royal Bank Of Canada upped their price target on ResMed from $294.00 to $300.00 and gave the stock an “outperform” rating in a research note on Friday, August 1st. Morgan Stanley upped their price target on ResMed from $298.00 to $304.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 21st. UBS Group upgraded ResMed to a “strong-buy” rating in a research note on Tuesday, September 16th. Finally, William Blair upgraded ResMed to a “strong-buy” rating in a research note on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $295.70.

Insider Buying and Selling

In related news, Director John Hernandez sold 2,575 shares of the firm’s stock in a transaction on Monday, August 18th. The stock was sold at an average price of $287.10, for a total value of $739,282.50. Following the completion of the sale, the director directly owned 4,045 shares in the company, valued at $1,161,319.50. This trade represents a 38.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the firm’s stock in a transaction on Tuesday, October 7th. The stock was sold at an average price of $282.85, for a total value of $2,265,345.65. Following the completion of the sale, the chief executive officer owned 467,792 shares of the company’s stock, valued at approximately $132,314,967.20. This represents a 1.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 18,743 shares of company stock worth $5,284,514 over the last three months. 0.65% of the stock is owned by insiders.

ResMed Stock Down 0.8%

NYSE RMD opened at $257.10 on Wednesday. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. The company has a market capitalization of $37.52 billion, a P/E ratio of 27.03, a P/E/G ratio of 1.79 and a beta of 0.83. ResMed Inc. has a one year low of $199.92 and a one year high of $293.81. The stock has a 50 day moving average price of $274.14 and a 200-day moving average price of $260.31.

ResMed (NYSE:RMD) last posted its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating analysts’ consensus estimates of $2.47 by $0.08. The firm had revenue of $1.35 billion during 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 company’s quarterly revenue was up 10.2% compared to the same quarter last year. During the same period in the prior year, the company earned $2.08 EPS. As a group, equities analysts predict that ResMed Inc. will post 9.47 EPS for the current fiscal year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 18th. Investors of record on Thursday, August 14th were given a $0.60 dividend. This is a boost from ResMed’s previous quarterly dividend of $0.53. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Thursday, August 14th. ResMed’s dividend payout ratio is 25.24%.

About ResMed

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.