ResMed (NYSE:RMD) Shares Down 4.7% - Time to Sell?

Key Points

• ResMed's stock price dropped by 4.7% during mid-day trading, closing at $266.13 after hitting a low of $268.65, which is significantly lower than its previous close of $279.19.
• Several analysts have revised their ratings and price targets for ResMed, with a consensus rating of "Moderate Buy" and an average price target of $278.36.
• The company increased its quarterly dividend to $0.60 per share, reflecting a positive change from the previous $0.53, representing a yield of 0.9%.

ResMed Inc. (NYSE:RMD - Get Free Report)'s share price fell 4.7% during mid-day trading on Wednesday . The stock traded as low as $268.65 and last traded at $266.13. 154,468 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 995,772 shares. The stock had previously closed at $279.19.

Analysts Set New Price Targets

Several research firms have recently issued reports on RMD. Wall Street Zen cut shares of ResMed from a "buy" rating to a "hold" rating in a report on Sunday, August 10th. Royal Bank Of Canada increased their price objective on shares of ResMed from $294.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, August 1st. 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 report on Friday, August 1st. Morgan Stanley set a $286.00 target price on shares of ResMed and gave the stock an "overweight" rating in a report on Tuesday, May 20th. Finally, UBS Group raised their target price on shares of ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $278.36.

ResMed Stock Down 3.5%

The business's 50 day moving average is $273.43 and its 200 day moving average is $248.06. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.53 and a current ratio of 3.44. The stock has a market cap of $39.44 billion, a price-to-earnings ratio of 28.33, a price-to-earnings-growth ratio of 1.87 and a beta of 0.85.

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

ResMed Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Thursday, August 14th will be paid a $0.60 dividend. The ex-dividend date of this dividend is Thursday, August 14th. This represents a $2.40 dividend on an annualized basis and a yield of 0.9%. This is a positive change from ResMed's previous quarterly dividend of $0.53. ResMed's dividend payout ratio (DPR) is 25.24%.

Insider Buying and Selling

In related news, Director Peter C. Farrell sold 945 shares of the firm's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total value of $241,438.05. Following the completion of the transaction, the director owned 68,273 shares of the company's stock, valued at approximately $17,443,068.77. This trade represents a 1.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total transaction of $2,238,355.32. Following the completion of the sale, the chief executive officer owned 455,503 shares of the company's stock, valued at approximately $127,303,978.44. The trade was a 1.73% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 19,588 shares of company stock valued at $5,289,241. Company insiders own 0.71% of the company's stock.

Institutional Trading of ResMed

Several hedge funds and other institutional investors have recently modified their holdings of the company. ICW Investment Advisors LLC raised its holdings in shares of ResMed by 0.4% during the first quarter. ICW Investment Advisors LLC now owns 11,394 shares of the medical equipment provider's stock worth $2,551,000 after acquiring an additional 41 shares in the last quarter. Johnson Investment Counsel Inc. raised its holdings in shares of ResMed by 2.8% during the second quarter. Johnson Investment Counsel Inc. now owns 1,665 shares of the medical equipment provider's stock worth $430,000 after acquiring an additional 45 shares in the last quarter. Quadcap Wealth Management LLC raised its holdings in shares of ResMed by 2.5% during the second quarter. Quadcap Wealth Management LLC now owns 1,880 shares of the medical equipment provider's stock worth $485,000 after acquiring an additional 45 shares in the last quarter. Smartleaf Asset Management LLC raised its holdings in shares of ResMed by 3.9% during the first quarter. Smartleaf Asset Management LLC now owns 1,222 shares of the medical equipment provider's stock worth $269,000 after acquiring an additional 46 shares in the last quarter. Finally, E Fund Management Co. Ltd. raised its holdings in shares of ResMed by 2.8% during the first quarter. E Fund Management Co. Ltd. now owns 1,719 shares of the medical equipment provider's stock worth $385,000 after acquiring an additional 47 shares in the last quarter. 54.98% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.