ResMed (NYSE:RMD) CEO Sells 4,991 Shares

Key Points

• ResMed CEO Michael Farrell sold 4,991 shares on July 7 in a pre-arranged Rule 10b5-1 transaction, generating about $1.09 million. After the sale, he still held 466,223 shares valued at roughly $101.9 million.
• The company’s recent fundamentals remain solid: ResMed reported quarterly EPS of $2.86, beating estimates, on revenue of $1.43 billion, up 10.8% year over year. Analysts currently expect full-year EPS of 11.13.
• Analyst sentiment is mixed but positive overall, with a consensus rating of “Moderate Buy” and an average price target of $266.55. Several firms trimmed targets recently, including Wells Fargo and RBC, but others kept outperform/overweight ratings.

ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 4,991 shares of the company's stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total value of $1,090,783.05. Following the sale, the chief executive officer owned 466,223 shares in the company, valued at approximately $101,893,036.65. This represents a 1.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ResMed Stock Performance

Shares of RMD stock opened at $205.74 on Thursday. The company has a fifty day moving average price of $200.79 and a two-hundred day moving average price of $228.69. ResMed Inc. has a one year low of $180.26 and a one year high of $293.81. The stock has a market cap of $29.84 billion, a P/E ratio of 19.84, a P/E/G ratio of 1.28 and a beta of 0.78. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate 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 previous year, the business earned $2.37 EPS. ResMed's revenue for the quarter was up 10.8% compared to the same quarter last year. As a group, equities analysts predict that ResMed Inc. will post 11.13 EPS for the current year.

ResMed Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, May 14th were issued a dividend of $0.60 per share. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. ResMed's payout ratio is presently 23.14%.

Institutional Trading of ResMed

Several institutional investors and hedge funds have recently modified their holdings of RMD. Landscape Capital Management L.L.C. raised its position in ResMed by 123.2% during the 3rd quarter. Landscape Capital Management L.L.C. now owns 49,017 shares of the medical equipment provider's stock worth $13,417,000 after purchasing an additional 27,060 shares during the last quarter. Hsbc Holdings PLC boosted its stake in ResMed by 17.6% during the fourth quarter. Hsbc Holdings PLC now owns 328,785 shares of the medical equipment provider's stock worth $79,321,000 after acquiring an additional 49,253 shares in the last quarter. Nordea Investment Management AB boosted its stake in ResMed by 37.2% during the fourth quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock worth $262,027,000 after acquiring an additional 294,124 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings in ResMed by 20.2% in the third quarter. Russell Investments Group Ltd. now owns 112,755 shares of the medical equipment provider's stock worth $30,847,000 after acquiring an additional 18,966 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in ResMed by 13.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 979,087 shares of the medical equipment provider's stock worth $235,833,000 after acquiring an additional 118,296 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Wells Fargo & Company decreased their price target on shares of ResMed from $227.00 to $225.00 and set an "equal weight" rating on the stock in a research note on Wednesday. Wall Street Zen cut ResMed from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. KeyCorp dropped their target price on ResMed from $290.00 to $266.00 and set an "overweight" rating for the company in a report on Monday, June 22nd. JPMorgan Chase & Co. initiated coverage on shares of ResMed in a research report on Wednesday, April 15th. They issued an "overweight" rating for the company. Finally, Royal Bank Of Canada cut their price target on ResMed from $321.00 to $276.00 and set an "outperform" rating for the company in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $266.55.

ResMed Company Profile

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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