ResMed (NYSE:RMD) CEO Sells $1,037,229.62 in Stock

Key Points

• ResMed CEO Michael Farrell sold 4,991 shares for about $1.04 million in a transaction disclosed in an SEC filing. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
• ResMed reported better-than-expected quarterly results, posting EPS of $2.86 versus the $2.79 consensus and revenue of $1.43 billion, up 10.8% year over year. The company also showed strong profitability, with a net margin of 27.44%.
• The company declared a quarterly dividend of $0.60 per share, payable on June 18, and analysts currently rate the stock a Moderate Buy with a consensus price target of $286.18. Institutional ownership remains high at 54.98%.

ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 4,991 shares of the stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $207.82, for a total value of $1,037,229.62. Following the transaction, the chief executive officer directly owned 466,223 shares in the company, valued at approximately $96,890,463.86. The trade was a 1.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ResMed Stock Performance

Shares of ResMed stock opened at $206.65 on Monday. The stock has a market capitalization of $30.10 billion, a price-to-earnings ratio of 19.93, a price-to-earnings-growth ratio of 1.32 and a beta of 0.84. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33. The business has a 50-day moving average of $230.41 and a 200 day moving average of $245.04. ResMed Inc. has a 12 month low of $198.64 and a 12 month high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The company had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period in the prior year, the firm earned $2.37 earnings per share. The business's revenue for the quarter was up 10.8% compared to the same quarter last year. As a group, sell-side analysts forecast that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th will be paid a $0.60 dividend. The ex-dividend date is Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. ResMed's payout ratio is 23.14%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on RMD. Robert W. Baird set a $225.00 price objective on ResMed in a research note on Friday, May 1st. KeyCorp cut their price target on ResMed from $302.00 to $290.00 and set an "overweight" rating on the stock in a report on Monday, April 27th. Piper Sandler increased their price target on ResMed from $270.00 to $275.00 and gave the company a "neutral" rating in a research report on Friday, January 30th. Wells Fargo & Company decreased their price objective on ResMed from $270.00 to $227.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. Finally, Citigroup lowered their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating for the company in a research report on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $286.18.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its stake in ResMed by 1.6% during the third quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock worth $5,211,940,000 after purchasing an additional 293,515 shares during the last quarter. State Street Corp increased its stake in ResMed by 1.2% in the fourth quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider's stock valued at $1,595,862,000 after purchasing an additional 76,244 shares during the last quarter. Bank of New York Mellon Corp increased its stake in ResMed by 0.7% in the first quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider's stock valued at $1,105,651,000 after purchasing an additional 34,732 shares during the last quarter. Geode Capital Management LLC raised its holdings in ResMed by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider's stock worth $1,032,877,000 after purchasing an additional 51,218 shares in the last quarter. Finally, Morgan Stanley lifted its position in shares of ResMed by 25.0% during the 4th quarter. Morgan Stanley now owns 2,891,697 shares of the medical equipment provider's stock worth $696,523,000 after buying an additional 578,559 shares during the last quarter. 54.98% of the stock is owned by institutional investors and hedge funds.

About ResMed

ResMed NYSE: RMD is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed's product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.

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