On September 10, 2023, it was announced that Mirova, a leading investment firm, has acquired a new position in shares of ResMed Inc. (NYSE:RMD). This news comes after the company filed its Form 13F with the Securities and Exchange Commission for the first quarter. According to the filing, Mirova acquired 1,741 shares of ResMed’s stock, which is valued at approximately $381,000.
ResMed is a well-known medical equipment provider that specializes in sleep apnea and respiratory care devices. The company recently released its earnings results for the quarter ending on August 3rd. During this period, ResMed reported earnings per share (EPS) of $1.60, falling short of the consensus estimate of $1.67 by ($0.07). Despite missing expectations in terms of EPS, ResMed saw an increase in revenue with $1.12 billion for the quarter, compared to the expected $1.14 billion.
The company’s net margin stood at an impressive 21.25%, indicating strong profitability. In addition, ResMed boasted a return on equity of 24.94%. These financial indicators demonstrate ResMed’s ability to generate substantial returns for its shareholders.
ResMed’s revenue growth remained robust as it posted a year-over-year increase of 22.7%. This continued growth is encouraging for investors and reflects positively on ResMed’s market performance.
Several research firms have provided their opinions on ResMed’s stock lately. UBS Group downgraded their rating from “buy” to “neutral,” while StockNews.com initiated coverage with a “hold” rating for the company. On the other hand, Bank of America lowered their target price from $260 to $250 but maintained their “buy” rating for ResMed.
Meanwhile, Needham & Company LLC upgraded their rating from “hold” to “buy.” Lastly, KeyCorp decreased their target price to $260 from $280 and assigned an “overweight” rating for the company. Overall, analysts seem optimistic about ResMed’s future prospects.
Looking ahead, analysts project that ResMed Inc. will achieve earnings per share of 7.07 for the current fiscal year. This anticipated results reaffirm the consensus opinion on ResMed’s positive outlook.
In conclusion, Mirova’s recent acquisition of shares in ResMed Inc. demonstrates their confidence in the company’s potential for growth and profitability. Despite falling short of expectations for earnings per share, ResMed’s strong revenue growth and profitability ratios showcase its resilience in a competitive market. With positive ratings from research firms and an average price target of $261.86, there is a prevailing sentiment that ResMed presents a favorable investment opportunity at present.
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ResMed Inc.: Gaining Institutional Investor Attention and Insider Trading Activities Influence Stock Portfolio
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”FLO” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]ResMed Inc., a prominent medical equipment provider, has recently been gaining attention from institutional investors and hedge funds. Ossiam, for instance, saw a 2.4% increase in its holdings of ResMed during the first quarter, now owning 1,919 shares valued at $420,000. In a similar vein, State of Tennessee Treasury Department raised its holdings by 3.4%, bringing their total to 22,477 shares worth $4,922,000. Candriam S.C.A also reportedly increased its holdings in ResMed by 5.8% during the same period.
Furthermore, Element Capital Management LLC acquired a new stake in ResMed worth approximately $4,130,000 during the first quarter. Additionally, CIBC Asset Management Inc witnessed growth in its position of ResMed shares by 2.6%, now owning 22,482 shares valued at $4,923,000.
It is worth noting that these institutional investors have amounted to ownership of approximately 63.79% of ResMed’s stock portfolio through these recent developments.
While institutional interest continues to surge for ResMed Inc., there are also notable activities involving corporate insiders within the company. CEO Michael J. Farrell completed a sales transaction on August 15th where he sold 5,675 shares of the company’s stock with an average price of $183.20 per share—a total transaction amounting to $1,039,660. After this sale, Farrell holds about 436,930 shares valued at roughly $80 million.
Similarly involved in insider trading was COO Robert Andrew Douglas who sold 1,500 shares on August 15th at an average price of $181.01 per share—yielding a total transaction value of $271,5150 and leaving him with approximately 250,526 remaining shares in the company.
These trades were disclosed by both executives through documents filed with the SEC, available for public access on the SEC website. Another sale by CEO Michael J. Farrell of 5,675 shares at an average price of $183.20 per share was also recorded on August 15th, and similarly reported alongside his previous trade.
In total, corporate insiders have sold a substantial 22,075 shares of ResMed stock in the last quarter alone—amounting to around $4,579,339. Corporate insiders presently maintain ownership of 1.39% of the company’s stock.
Moving to ResMed’s stock report, we observe that NYSE RMD opened at $147.95 on Friday with a market capitalization of $21.76 billion—a significant figure indicative of ResMed’s prominent presence in the medical equipment industry. The stock features a price-to-earnings ratio of 24.25 along with a PEG ratio of 2.31 and a beta coefficient of 0.52.
ResMed Inc.’s performance in terms of price trends reveals that its fifty-day moving average stands at $191.86 while the two-hundred-day moving average is slightly higher at $209.98—suggesting volatility and fluctuations within the market.
Moreover, ResMed boasts favorable liquidity ratios with a debt-to-equity ratio measuring at 0.35—an indication that the company manages its financial leverage reasonably well.
Notably, ResMed has reached both highs and lows within its fifty-two-week range—a peak price recorded at $243.52 and a trough price noted as $146.44.
These developments demonstrate significant movements and transactions surrounding ResMed Inc., including increased institutional investor participation and notable insider trading activities by key executives such as Michael J. Farrell and Robert Andrew Douglas.
It remains to be seen how these recent activities will influence the future trajectory of ResMed as it navigates through an ever-evolving market landscape in the medical equipment sector.
