ResMed Inc. (NYSE:RMD) is taking the medical equipment industry by storm as it has decreased its holdings by 3.9% for medical equipment provider’s stock to USD 14,712,000 at the end of the 4th quarter. Nisa Investment Advisors LLC has claimed ResMed’s stocks and sold them off, according to records filed at Securities and Exchange Commission ‘s (SEC) recent 13F filing.
ResMed last released its quarterly earnings data on January 26th refuting previous estimates of $996.22 million and instead making an enormous $1.03 billion during the quarter. The company excelled expectations with a return on equity of 25.46% and a net margin of 21.51%. Experts have predicted that ResMed will attain earnings of $6.39 per share for this year.
Michael J. Farrell, CEO of ResMed, sold off his shares in February and earned approximately USD 1,219,160 from selling off 5,675 shares in the business transaction which was also reported in a Securities & Exchange Commission legal filing system earlier this year.
David Pendarvis who is another company insider like Michaels J., reportedly sold off approximately USD336,750 worth of stocks in a separate deal on February 3rd.
Insiders selling off company’s stock has been an ongoing issue with over 30,619 shares of Resmed’s company stock valued at USD6.61m being sold out without any clear indication if profits reaped would go back into the company or not.
This steady flow of transactions amongst insiders raises concern among stakeholders about dwindling confidence held up towards the ResMed brand – one wonders whether they are cashing out while they still can?
Hedge Funds Take Notice of ResMed’s Performance and Stake Increase While CEO and Insider Sell Shares
ResMed, a medical equipment provider, has attracted significant attention from hedge funds over recent months. Several firms have increased their stakes in the company, such as Point72 Asset Management and Ardevora Asset Management, while Capital Research Global Investors and Vanguard Group have both lifted their positions in ResMed by considerable amounts. Moreover, Royal Bank of Canada boosted its stake by 133.6% during Q3 last year. The combined holding of institutional investors and hedge funds now accounts for almost two-thirds of the company’s shares.
In other news related to ResMed, CEO Michael J. Farrell sold more than 5,500 shares of the company’s stock at an average price of $214.83 per share for a total transaction value in excess of $1m on February 15th this year. On the same day, insider David Pendarvis sold 1,500 shares with an average price of $224.50 each for a total value of $336k.
ResMed officials also recently announced a quarterly dividend to shareholders paid on Thursday, March 16th.
Some research analysts have offered various opinions on RMD’s performance: Citigroup raised the rating from neutral to buy earlier this year; StockNews.com suggested a more cautious hold rating around the same time and JPMorgan Chase & Co set an overweight rating with upgrade and premium pricing setting close above other ratings trend seen subsequently in analyst reports published over recent weeks.
The current share price hovers around $225 compared to highs of nearly $248 achieved during the past twelve months