ResMed (NYSE:RMD) Shares Gap Down Following Insider Selling

Key Points

• ResMed shares gapped down from a prior close of $223.24 to open at $207.18 after director Peter Farrell sold 8,000 shares for $1.8 million. The sale occurred under a pre-arranged Rule 10b5-1 plan and reduced his stake by 13.16%.
• ResMed reported strong fiscal fourth-quarter results, with EPS of $2.95 beating expectations and revenue rising 8.6% year over year to $1.46 billion; the company also raised its dividend.
• Analyst sentiment remains cautious, with a consensus “Hold” rating despite price targets above the current share price. Investors are also monitoring tariffs, inflation and hospital-spending pressures that could weigh on medtech demand and margins.

ResMed Inc. (NYSE:RMD - Get Free Report) gapped down prior to trading on Friday after an insider sold shares in the company. The stock had previously closed at $223.24, but opened at $207.18. ResMed shares last traded at $209.5380, with a volume of 523,068 shares.

Specifically, Director Peter C. Farrell sold 8,000 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the completion of the sale, the director owned 52,773 shares in the company, valued at $11,873,925. The trade was a 13.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

RMD has been the topic of a number of recent research reports. Mizuho cut their target price on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a report on Wednesday, July 15th. JPMorgan Chase & Co. assumed coverage on shares of ResMed in a research note on Wednesday, April 15th. They set an "overweight" rating for the company. Citigroup restated a "neutral" rating and set a $235.00 price objective (down from $270.00) on shares of ResMed in a report on Sunday, July 12th. Evercore set a $255.00 price objective on shares of ResMed and gave the company an "outperform" rating in a report on Monday, April 13th. Finally, Morgan Stanley reissued an "equal weight" rating and set a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Seven research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $244.50.

Key ResMed News

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed reported fiscal Q4 earnings of $2.95 per share, above analyst expectations of approximately $2.89–$2.90 and up from $2.55 a year earlier. Revenue rose 8.6% year over year to $1.46 billion, supporting the company’s continued growth. ResMed Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its dividend alongside its strong fourth-quarter and full-year fiscal 2026 results, potentially increasing its appeal to income-focused investors. ResMed Posts Strong Q4 Earnings and Lifts Dividend
• Neutral Sentiment: Analyst opinion remains cautious. ResMed has an average “Hold” rating, with several firms recently reducing price targets, although the consensus target of $246.25 remains above the current trading level. ResMed Receives Average Hold Rating
• Neutral Sentiment: Investors are also weighing industry risks, including tariffs, inflation and pressure on hospital spending, which could affect medtech demand and margins despite ResMed’s profitability. Medtech Earnings Season Preview
• Negative Sentiment: Director Peter Farrell sold 8,000 shares for $1.8 million, reducing his stake by 13.16%. Because the sale occurred under a pre-arranged Rule 10b5-1 plan, it is a limited signal of insider confidence, but it may still create modest selling pressure. SEC Insider Trading Filing

ResMed Price Performance

The firm has a market cap of $30.75 billion, a P/E ratio of 20.44, a P/E/G ratio of 1.36 and a beta of 0.76. The company has a fifty day moving average of $200.06 and a 200-day moving average of $222.30. 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 issued its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.06. The business had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.46 billion. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The business's revenue was up 8.6% on a year-over-year basis. During the same period last year, the business earned $2.55 EPS. On average, sell-side analysts anticipate that ResMed Inc. will post 11.14 EPS for the current fiscal year.

Institutional Trading of ResMed

Several institutional investors and hedge funds have recently made changes to their positions in the company. State Street Corp boosted its holdings in ResMed by 1.2% during the fourth quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider's stock worth $1,595,862,000 after purchasing an additional 76,244 shares during the last quarter. Bank of New York Mellon Corp grew its position in ResMed by 0.7% in the 1st quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider's stock worth $1,105,651,000 after purchasing an additional 34,732 shares in the last quarter. Geode Capital Management LLC increased its stake in ResMed by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider's stock valued at $1,032,877,000 after buying an additional 51,218 shares during the last quarter. 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 in the last quarter. Finally, Northern Trust Corp lifted its position in shares of ResMed by 5.2% during the 4th quarter. Northern Trust Corp now owns 1,785,384 shares of the medical equipment provider's stock worth $430,045,000 after buying an additional 87,502 shares in the last quarter. 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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