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

Key Points

• CEO Michael Farrell sold 4,991 ResMed shares at an average price of $226.33, generating approximately $1.13 million. The transaction reduced his holdings by 1.03% and was conducted under a pre-arranged Rule 10b5-1 trading plan.
• ResMed reported quarterly EPS of $2.95, exceeding estimates of $2.89, while revenue reached $1.46 billion and increased 8.6% year over year. The company also raised its quarterly dividend to $0.66, equivalent to a 1.2% yield.
• Analyst sentiment is mixed, with seven Buy ratings and nine Hold ratings, producing a consensus rating of “Hold” and an average price target of $241.69. Shares recently traded near $226.52, with a 12-month range of $180.26 to $284.05.

ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 4,991 shares of the firm's stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $226.33, for a total value of $1,129,613.03. Following the completion of the transaction, the chief executive officer owned 479,803 shares in the company, valued at $108,593,812.99. The trade was a 1.03% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ResMed Price Performance

Shares of NYSE:RMD traded up $0.54 during midday trading on Thursday, hitting $226.52. The company's stock had a trading volume of 651,064 shares, compared to its average volume of 1,299,688. The company has a market cap of $31.86 billion, a P/E ratio of 21.72, a price-to-earnings-growth ratio of 1.39 and a beta of 0.75. ResMed Inc. has a 12-month low of $180.26 and a 12-month high of $284.05. The business's 50 day simple moving average is $224.88 and its 200 day simple moving average is $213.87. 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $0.06. The company had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.46 billion. ResMed had a net margin of 26.94% and a return on equity of 25.58%. ResMed's revenue was up 8.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.55 EPS. On average, analysts forecast that ResMed Inc. will post 12.07 EPS for the current year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th were given a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from ResMed's previous quarterly dividend of $0.60. The ex-dividend date was Thursday, August 20th. ResMed's dividend payout ratio (DPR) is currently 25.31%.

Institutional Investors Weigh In On ResMed

Institutional investors have recently modified their holdings of the company. Kera Capital Partners Inc. raised its stake in shares of ResMed by 6.6% in the fourth quarter. Kera Capital Partners Inc. now owns 841 shares of the medical equipment provider's stock valued at $217,000 after acquiring an additional 52 shares in the last quarter. Andina Capital Management LLC boosted its holdings in ResMed by 2.9% in the fourth quarter. Andina Capital Management LLC now owns 1,988 shares of the medical equipment provider's stock valued at $479,000 after purchasing an additional 56 shares during the period. Turtle Creek Wealth Advisors LLC grew its stake in ResMed by 6.2% during the 1st quarter. Turtle Creek Wealth Advisors LLC now owns 994 shares of the medical equipment provider's stock worth $223,000 after purchasing an additional 58 shares in the last quarter. Meridian Management Co. grew its stake in ResMed by 0.6% during the 1st quarter. Meridian Management Co. now owns 11,332 shares of the medical equipment provider's stock worth $2,544,000 after purchasing an additional 70 shares in the last quarter. Finally, Glenmede Trust Co. NA increased its holdings in ResMed by 1.3% during the 1st quarter. Glenmede Trust Co. NA now owns 5,479 shares of the medical equipment provider's stock worth $1,230,000 after purchasing an additional 71 shares during the period. 54.98% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

RMD has been the topic of a number of analyst reports. Mizuho reduced their price objective on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 15th. Citigroup reaffirmed a "neutral" rating on shares of ResMed in a research note on Thursday, September 10th. KeyCorp lifted their price target on ResMed from $255.00 to $267.00 and gave the stock an "overweight" rating in a report on Monday, August 31st. Robert W. Baird set a $213.00 price objective on shares of ResMed in a report on Friday, August 7th. Finally, UBS Group restated a "buy" rating and set a $300.00 price objective on shares of ResMed in a research report on Tuesday, July 21st. Seven investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, ResMed currently has an average rating of "Hold" and a consensus price target of $241.69.

About ResMed

ResMed Inc NYSE: RMD develops, manufactures and distributes medical equipment and digital health solutions for sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions. Its products include continuous positive airway pressure (CPAP), bilevel and other noninvasive ventilation devices, as well as masks, humidifiers, accessories and diagnostic equipment.

The company also provides cloud-connected software and digital health services that support patient monitoring, therapy management and communication among patients, clinicians and care providers.

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