Fairtree Asset Management Pty Ltd Makes New Investment in ResMed Inc. $RMD

Fairtree Asset Management Pty Ltd purchased a new stake in ResMed Inc. (NYSE:RMD) during the 2nd quarter, Holdings Channel.com reports. The institutional investor purchased 13,498 shares of the medical equipment provider’s stock, valued at approximately $2,630,000. ResMed makes up approximately 1.0% of Fairtree Asset Management Pty Ltd’s portfolio, making the stock its 24th largest position.

A number of other institutional investors and hedge funds also recently modified their holdings of RMD. Hara Capital LLC acquired a new stake in shares of ResMed during the 2nd quarter valued at $181,000. SGL Investment Advisors Inc. acquired a new position in shares of ResMed in the 2nd quarter worth $2,290,000. PCM Encore LLC acquired a new position in shares of ResMed in the 2nd quarter worth $327,000. Vise Technologies Inc. acquired a new stake in shares of ResMed during the second quarter worth $571,000. Finally, XY Capital Ltd acquired a new stake in shares of ResMed during the second quarter worth $7,166,000. Institutional investors and hedge funds own 54.98% of the company’s stock.

Insider Buying and Selling

In other news, Director Peter C. Farrell sold 8,000 shares of the stock in a transaction that occurred on 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 directly owned 52,773 shares of the company’s stock, valued at $11,873,925. This represents a 13.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the sale, the chief executive officer owned 466,256 shares of the company’s stock, valued at approximately $95,904,196.64. This represents a 1.06% decrease in their ownership of the stock. 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 three months. 0.65% of the stock is owned by insiders.

ResMed Stock Performance

Shares of ResMed stock opened at $228.81 on Friday. ResMed Inc. has a 12 month low of $180.26 and a 12 month high of $293.81. The company has a quick ratio of 2.42, a current ratio of 3.10 and a debt-to-equity ratio of 0.06. The stock has a market cap of $33.01 billion, a PE ratio of 21.94, a price-to-earnings-growth ratio of 1.45 and a beta of 0.76. The business has a fifty day simple moving average of $206.48 and a 200-day simple moving average of $219.98.

ResMed (NYSE:RMD) last announced its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the prior year, the business earned $2.55 EPS. The business’s revenue for the quarter was up 8.6% on a year-over-year basis. On average, sell-side analysts anticipate that ResMed Inc. will post 12.03 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 issued a $0.66 dividend. The ex-dividend date is Thursday, August 20th. 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. ResMed’s dividend payout ratio is currently 23.01%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Citigroup reaffirmed a “neutral” rating and set a $235.00 target price (down from $270.00) on shares of ResMed in a report on Sunday, July 12th. Mizuho cut their price objective on ResMed from $235.00 to $220.00 and set an “outperform” rating on the stock in a report on Wednesday, July 15th. UBS Group reaffirmed a “buy” rating and set a $300.00 price objective on shares of ResMed in a research note on Tuesday, July 21st. Weiss Ratings raised shares of ResMed from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of ResMed in a research report on Wednesday, July 1st. Seven research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target 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.