ResMed (NYSE:RMD) CEO Michael Farrell Sells 4,991 Shares

Key Points

• ResMed CEO Michael Farrell sold 4,991 shares for approximately $1.11 million under a pre-arranged Rule 10b5-1 trading plan, reducing his direct ownership by 1.06% to 466,256 shares.
• ResMed recently reported quarterly EPS of $2.95, beating estimates by $0.06, while revenue rose 8.6% year over year to $1.46 billion.
• The company increased its quarterly dividend from $0.60 to $0.66 per share, equivalent to an annualized $2.64 dividend and a 1.2% yield; analysts collectively rate the stock “Hold,” with an average price target of $240.31.

ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 4,991 shares of ResMed stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $222.44, for a total transaction of $1,110,198.04. Following the completion of the sale, the chief executive officer directly owned 466,256 shares of the company's stock, valued at $103,713,984.64. The trade was a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ResMed Trading Down 0.5%

Shares of RMD opened at $220.04 on Thursday. ResMed Inc. has a fifty-two week low of $180.26 and a fifty-two week high of $284.87. The company has a market capitalization of $31.74 billion, a PE ratio of 21.10, a price-to-earnings-growth ratio of 1.40 and a beta of 0.77. The stock has a fifty day moving average of $217.00 and a two-hundred day moving average of $217.27. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.06. The business had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The business's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.55 earnings per share. As a group, analysts forecast that ResMed Inc. will post 12.02 EPS for the current year.

ResMed Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, August 20th will be issued a $0.66 dividend. The ex-dividend date is Thursday, August 20th. This is an increase from ResMed's previous quarterly dividend of $0.60. This represents a $2.64 dividend on an annualized basis and a yield of 1.2%. ResMed's payout ratio is 25.31%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on RMD shares. Weiss Ratings raised shares of ResMed from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Piper Sandler decreased their price target on shares of ResMed from $233.00 to $225.00 and set a "neutral" rating for the company in a research report on Friday, August 7th. The Goldman Sachs Group reissued a "buy" rating on shares of ResMed in a research report on Wednesday, July 1st. Mizuho decreased their target price on ResMed from $235.00 to $220.00 and set an "outperform" rating for the company in a research report on Wednesday, July 15th. Finally, Wells Fargo & Company dropped their target price on ResMed from $225.00 to $215.00 and set an "equal weight" rating on the stock in a report on Friday, August 7th. Six investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $240.31.

Institutional Trading of ResMed

Several large investors have recently modified their holdings of RMD. Imprint Wealth LLC purchased a new position in ResMed in the third quarter valued at about $26,000. WFA of San Diego LLC acquired a new stake in shares of ResMed during the second quarter worth approximately $26,000. International Assets Investment Management LLC acquired a new position in ResMed during the 4th quarter worth $25,000. Sunbelt Securities Inc. bought a new stake in shares of ResMed in the 3rd quarter worth about $31,000. Finally, Bell Investment Advisors Inc acquired a new stake in shares of ResMed in the 2nd quarter valued at about $26,000. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Company Profile

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.

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