Insider Selling: ResMed Inc. (NYSE:RMD) CEO Sells 8,009 Shares of Stock

Key Points

• ResMed Inc. CEO Michael J. Farrell sold 8,009 shares at an average price of $279.48, totaling over $2.2 million, resulting in a 1.73% decrease in his ownership.
• The company reported $2.55 EPS for the last quarter, surpassing analyst estimates, with revenues up 10.2% year-over-year, totaling $1.35 billion.
• ResMed will pay a quarterly dividend of $0.60 on September 18th, increasing from the previous dividend of $0.53, marking a yield of 0.8%.

ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael J. Farrell sold 8,009 shares of the company's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $279.48, for a total value of $2,238,355.32. Following the completion of the transaction, the chief executive officer directly owned 455,503 shares in the company, valued at $127,303,978.44. This trade represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.

ResMed Trading Up 0.6%

Shares of ResMed stock traded up $1.80 on Monday, hitting $285.70. 274,091 shares of the company traded hands, compared to its average volume of 998,596. The stock's 50 day moving average price is $260.52 and its 200-day moving average price is $241.77. The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. ResMed Inc. has a 52 week low of $199.92 and a 52 week high of $293.08. The company has a market cap of $41.89 billion, a PE ratio of 30.05, a PEG ratio of 1.91 and a beta of 0.77.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping analysts' consensus estimates of $2.47 by $0.08. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. ResMed's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.08 earnings per share. Equities research analysts predict that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, August 14th will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 0.8%. This is a positive change from ResMed's previous quarterly dividend of $0.53. The ex-dividend date of this dividend is Wednesday, August 13th. ResMed's payout ratio is presently 25.24%.

Hedge Funds Weigh In On ResMed

A number of large investors have recently bought and sold shares of the business. Global X Japan Co. Ltd. grew its holdings in ResMed by 121.4% in the first quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock worth $28,000 after purchasing an additional 68 shares during the last quarter. Colonial Trust Co SC grew its holdings in ResMed by 6,250.0% in the fourth quarter. Colonial Trust Co SC now owns 127 shares of the medical equipment provider's stock worth $29,000 after purchasing an additional 125 shares during the last quarter. Optiver Holding B.V. purchased a new position in ResMed in the fourth quarter worth $33,000. Golden State Wealth Management LLC grew its holdings in ResMed by 384.8% in the first quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock worth $36,000 after purchasing an additional 127 shares during the last quarter. Finally, Itau Unibanco Holding S.A. grew its holdings in ResMed by 1,000.0% in the fourth quarter. Itau Unibanco Holding S.A. now owns 165 shares of the medical equipment provider's stock worth $38,000 after purchasing an additional 150 shares during the last quarter. Institutional investors own 54.98% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on RMD shares. UBS Group upped their price objective on ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Piper Sandler raised their price target on ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a report on Friday, August 1st. JPMorgan Chase & Co. raised their price target on ResMed from $286.00 to $290.00 and gave the company an "overweight" rating in a report on Thursday, April 24th. William Blair raised ResMed to a "strong-buy" rating in a report on Friday, August 1st. Finally, Stifel Nicolaus raised their price target on ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a report on Friday, August 1st. One analyst has rated the stock with a sell rating, four have issued a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $274.83.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.