ResMed (NYSE:RMD) CEO Sells $968,054.36 in Stock

Key Points

• CEO Michael Farrell sold 4,991 shares of ResMed stock for about $968,054 in a pre-arranged Rule 10b5-1 transaction. After the sale, he still directly owned 466,256 shares valued at about $90.4 million.
• ResMed shares rose 1.7% to $196.46 in Tuesday trading, though the stock remains well below its 52-week high of $293.81. The company has a market cap of about $28.5 billion.
• ResMed recently beat earnings and revenue estimates, reporting EPS of $2.86 versus $2.79 expected and revenue of $1.43 billion. The company also declared a quarterly dividend of $0.60 per share, implying a 1.2% yield.

ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $193.96, for a total transaction of $968,054.36. Following the transaction, the chief executive officer directly owned 466,256 shares of the company's stock, valued at $90,435,013.76. This represents a 1.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ResMed Stock Up 1.7%

Shares of NYSE RMD traded up $3.32 on Tuesday, reaching $196.46. 483,971 shares of the company's stock traded hands, compared to its average volume of 1,211,436. ResMed Inc. has a 12 month low of $180.26 and a 12 month high of $293.81. The business's 50 day simple moving average is $212.53 and its two-hundred day simple moving average is $236.78. The company has a market cap of $28.50 billion, a price-to-earnings ratio of 18.94, a price-to-earnings-growth ratio of 1.25 and a beta of 0.80. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06.

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

ResMed Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, May 14th will be given a dividend of $0.60 per share. The ex-dividend date of this dividend is Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. ResMed's dividend payout ratio (DPR) is 23.14%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. assumed coverage on shares of ResMed in a research report on Wednesday, April 15th. They set an "overweight" rating for the company. Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. Citigroup reduced their price target on shares of ResMed from $345.00 to $340.00 and set a "buy" rating for the company in a research report on Thursday, April 9th. Wells Fargo & Company reduced their price target on shares of ResMed from $270.00 to $227.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. Finally, Royal Bank Of Canada raised their price target on shares of ResMed from $314.00 to $321.00 and gave the company an "outperform" rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $286.18.

Institutional Investors Weigh In On ResMed

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Landscape Capital Management L.L.C. grew its holdings 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 valued at $13,417,000 after purchasing an additional 27,060 shares during the last quarter. Nordea Investment Management AB grew its holdings in ResMed by 37.2% during the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock valued at $262,027,000 after purchasing an additional 294,124 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in ResMed by 20.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 112,755 shares of the medical equipment provider's stock valued at $30,847,000 after purchasing an additional 18,966 shares during the last quarter. Rhumbline Advisers grew its holdings in ResMed by 3.8% during the 3rd quarter. Rhumbline Advisers now owns 318,937 shares of the medical equipment provider's stock valued at $87,302,000 after purchasing an additional 11,696 shares during the last quarter. Finally, Intech Investment Management LLC boosted its position in ResMed by 40.9% in the 3rd quarter. Intech Investment Management LLC now owns 31,299 shares of the medical equipment provider's stock valued at $8,567,000 after buying an additional 9,083 shares during the period. Hedge funds and other institutional investors own 54.98% of the company's stock.

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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