Principal Financial Group Inc. Grows Position in ResMed Inc. $RMD

Principal Financial Group Inc. lifted its stake in ResMed Inc. (NYSE:RMD) by 2.1% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 180,269 shares of the medical equipment provider’s stock after buying an additional 3,767 shares during the quarter. Principal Financial Group Inc. owned approximately 0.12% of ResMed worth $43,421,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of RMD. ORG Partners LLC lifted its holdings in shares of ResMed by 181.6% in the fourth quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider’s stock worth $26,000 after buying an additional 69 shares in the last quarter. Imprint Wealth LLC purchased a new position in shares of ResMed in the third quarter worth $26,000. WFA of San Diego LLC purchased a new position in shares of ResMed in the second quarter worth $26,000. Sunbelt Securities Inc. purchased a new position in shares of ResMed in the third quarter worth $31,000. Finally, Westside Investment Management Inc. lifted its holdings in shares of ResMed by 100.0% in the third quarter. Westside Investment Management Inc. now owns 132 shares of the medical equipment provider’s stock worth $36,000 after buying an additional 66 shares in the last quarter. Hedge funds and other institutional investors own 54.98% of the company’s stock.

Insider Buying and Selling at ResMed

In other news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total value of $450,000.00. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $225.50, for a total transaction of $1,125,470.50. Following the completion of the sale, the chief executive officer directly owned 466,223 shares in the company, valued at approximately $105,133,286.50. This represents a 1.06% 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. In the last three months, insiders sold 18,973 shares of company stock worth $4,715,237. Insiders own 0.65% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on RMD. Wells Fargo & Company decreased their price target on shares of ResMed from $270.00 to $227.00 and set an “equal weight” rating on the stock in a research note on Friday, May 1st. Robert W. Baird set a $225.00 price target on shares of ResMed in a research note on Friday, May 1st. KeyCorp decreased their price target on shares of ResMed from $302.00 to $290.00 and set an “overweight” rating on the stock in a research note on Monday, April 27th. Weiss Ratings downgraded shares of ResMed from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, March 19th. Finally, Wall Street Zen downgraded shares of ResMed from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $286.18.

ResMed Price Performance

ResMed stock opened at $206.65 on Friday. The company has a market cap of $30.10 billion, a price-to-earnings ratio of 19.93, a PEG ratio of 1.32 and a beta of 0.84. The firm’s fifty day moving average is $230.41 and its 200 day moving average is $245.04. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. ResMed Inc. has a 52-week low of $198.64 and a 52-week high of $293.81.

ResMed (NYSE:RMD) last released its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The company had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter in the prior year, the firm earned $2.37 earnings per share. ResMed’s revenue was up 10.8% on a year-over-year basis. Sell-side analysts forecast that ResMed Inc. will post 11.13 EPS for the current fiscal year.

ResMed Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th will be paid a $0.60 dividend. The ex-dividend date of this dividend is Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. ResMed’s dividend payout ratio is currently 23.14%.

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.