ResMed Inc. (NYSE:RMD) to Issue Quarterly Dividend of $0.60

Key Points

• ResMed Inc. has declared a quarterly dividend of $0.60 per share, reflecting a 13.2% increase from the previous dividend of $0.53, with an ex-dividend date set for August 13th.
• Shares of ResMed traded down 1.9% to $272.16 during midday trading, with a market cap of $39.91 billion and a price-to-earnings ratio of 30.55.
• Additionally, the company's insiders have sold a total of 29,013 shares worth over $7 million, indicating possible changes in ownership stakes among directors.

ResMed Inc. (NYSE:RMD - Get Free Report) declared a quarterly dividend on Thursday, July 31st, RTT News reports. Stockholders of record on Thursday, August 14th will be given a dividend of 0.60 per share by the medical equipment provider on Thursday, September 18th. This represents a c) dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Wednesday, August 13th. This is a 13.2% increase from ResMed's previous quarterly dividend of $0.53.

ResMed has a dividend payout ratio of 20.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect ResMed to earn $10.36 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 20.5%.

ResMed Stock Down 1.9%

Shares of ResMed stock traded down $5.28 during midday trading on Thursday, reaching $272.16. 1,442,961 shares of the company's stock traded hands, compared to its average volume of 991,679. The company has a market cap of $39.91 billion, a price-to-earnings ratio of 30.55, a price-to-earnings-growth ratio of 1.72 and a beta of 0.77. The company's 50 day simple moving average is $255.34 and its 200 day simple moving average is $239.69. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.49 and a current ratio of 3.41. ResMed has a 52 week low of $199.92 and a 52 week high of $278.86.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share for the quarter, beating analysts' consensus estimates of $2.47 by $0.08. ResMed had a net margin of 26.15% and a return on equity of 25.67%. Equities analysts expect that ResMed will post 9.47 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Witte Jan De sold 2,000 shares of ResMed stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $243.47, for a total transaction of $486,940.00. Following the completion of the transaction, the director directly owned 5,806 shares of the company's stock, valued at $1,413,586.82. This trade represents a 25.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Peter C. Farrell sold 945 shares of ResMed stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total transaction of $241,438.05. Following the transaction, the director directly owned 68,273 shares of the company's stock, valued at $17,443,068.77. This represents a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 29,013 shares of company stock worth $7,238,913. Corporate insiders own 0.71% of the company's stock.

Hedge Funds Weigh In On ResMed

Institutional investors have recently added to or reduced their stakes in the company. Global X Japan Co. Ltd. lifted its holdings in ResMed by 121.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock valued at $28,000 after purchasing an additional 68 shares during the last quarter. Colonial Trust Co SC raised its stake in shares of 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 acquiring an additional 125 shares during the last quarter. Optiver Holding B.V. bought a new position in shares of ResMed in the fourth quarter worth about $33,000. Golden State Wealth Management LLC raised its stake in shares of 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 acquiring an additional 127 shares during the last quarter. Finally, Itau Unibanco Holding S.A. raised its stake in shares of 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 acquiring an additional 150 shares during the last quarter. 54.98% of the stock is owned by institutional investors.

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.

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