Michael Farrell Sells 8,009 Shares of ResMed (NYSE:RMD) Stock

Key Points

• CEO Michael Farrell sold 8,009 shares of ResMed stock at an average price of $282.85, totaling approximately $2.27 million, reducing his position by 1.68%.
• ResMed recently declared a quarterly dividend increase to $0.60 per share, up from $0.53, representing an annual yield of 0.9%.
• Equity analysts have set a consensus price target of $294.20 for ResMed, with ratings ranging from Strong Buy to Hold from several notable firms.

ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 8,009 shares of the stock in a transaction dated Tuesday, October 7th. The stock was sold at an average price of $282.85, for a total transaction of $2,265,345.65. Following the sale, the chief executive officer owned 467,792 shares in the company, valued at approximately $132,314,967.20. This trade represents a 1.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

ResMed Price Performance

Shares of ResMed stock traded down $3.80 on Thursday, hitting $278.55. The company had a trading volume of 325,644 shares, compared to its average volume of 986,914. ResMed Inc. has a 52 week low of $199.92 and a 52 week high of $293.81. The company has a market cap of $40.65 billion, a PE ratio of 29.32, a PEG ratio of 1.90 and a beta of 0.83. The business has a 50-day simple moving average of $278.54 and a 200-day simple moving average of $254.73. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating the consensus estimate of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter in the prior year, the firm earned $2.08 EPS. The firm's quarterly revenue was up 10.2% on a year-over-year basis. Research analysts expect that ResMed Inc. will post 9.47 EPS for the current fiscal year.

ResMed Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th were given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. This is a boost from ResMed's previous quarterly dividend of $0.53. The ex-dividend date was Thursday, August 14th. ResMed's dividend payout ratio (DPR) is presently 25.24%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Royal Bank Of Canada upped their target price on shares of ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. William Blair upgraded shares of ResMed to a "strong-buy" rating in a report on Friday, August 1st. CLSA upgraded shares of ResMed from a "hold" rating to an "outperform" rating in a report on Tuesday, September 2nd. Mizuho increased their price target on shares of ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Finally, Piper Sandler increased their price objective on shares of ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $294.20.

Hedge Funds Weigh In On ResMed

A number of hedge funds and other institutional investors have recently made changes to their positions in RMD. WFA of San Diego LLC purchased a new stake in ResMed during the second quarter valued at about $26,000. Global X Japan Co. Ltd. increased its position in shares of 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. Golden State Wealth Management LLC grew its position in ResMed by 384.8% during the first quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock valued at $36,000 after acquiring an additional 127 shares during the last quarter. Zions Bancorporation National Association UT bought a new position in ResMed during the first quarter valued at approximately $45,000. Finally, Groupe la Francaise purchased a new stake in shares of ResMed during the first quarter valued at approximately $45,000. 54.98% of the stock is owned by hedge funds and other institutional investors.

About ResMed

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.

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