ResMed (NYSE:RMD) Shares Gap Down - Here's What Happened

Key Points

• ResMed shares gapped down ahead of the market open, opening at $193.72 after closing at $203.87, before recovering to trade near $199.27.
• Analysts remain broadly constructive despite recent price-target cuts: ResMed has a Moderate Buy consensus and an average target of $260.17, while Goldman Sachs reiterated a buy rating.
• The company continues to show solid fundamentals, with its latest quarter beating expectations on earnings and revenue; ResMed also pays a quarterly dividend of $0.60 per share, yielding about 1.2% annually.

ResMed Inc. (NYSE:RMD - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $203.87, but opened at $193.72. ResMed shares last traded at $199.27, with a volume of 282,707 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on RMD shares. The Goldman Sachs Group reiterated a "buy" rating on shares of ResMed in a report on Wednesday, July 1st. Weiss Ratings lowered shares of ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 22nd. Wells Fargo & Company dropped their price objective on ResMed from $227.00 to $225.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 8th. Royal Bank Of Canada dropped their price objective on ResMed from $321.00 to $276.00 and set an "outperform" rating on the stock in a research note on Wednesday. Finally, KeyCorp dropped their price target on ResMed from $290.00 to $266.00 and set an "overweight" rating on the stock in a research note on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $260.17.

ResMed Trading Down 2.4%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01. The stock has a market capitalization of $28.86 billion, a price-to-earnings ratio of 19.19, a price-to-earnings-growth ratio of 1.22 and a beta of 0.78. The business has a fifty day simple moving average of $200.46 and a 200 day simple moving average of $228.14.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.79 by $0.07. The company had revenue of $1.43 billion for the quarter, compared to analysts' expectations 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 period last year, the firm earned $2.37 earnings per share. As a group, research analysts expect that ResMed Inc. will post 11.13 EPS for the current year.

ResMed Announces Dividend

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

Insider Transactions at ResMed

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total value of $1,090,783.05. Following the transaction, the chief executive officer directly owned 466,223 shares of the company's stock, valued at $101,893,036.65. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,973 shares of company stock worth $3,096,067 in the last 90 days. Corporate insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

Several hedge funds have recently modified their holdings of RMD. International Assets Investment Management LLC acquired a new stake in shares of ResMed during the fourth quarter valued at about $25,000. ORG Partners LLC boosted its position in ResMed by 181.6% during the 4th quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock worth $26,000 after buying an additional 69 shares during the period. Imprint Wealth LLC bought a new stake in ResMed during the 3rd quarter worth approximately $26,000. WFA of San Diego LLC bought a new stake in ResMed during the 2nd quarter worth approximately $26,000. Finally, Sunbelt Securities Inc. acquired a new position in ResMed in the 3rd quarter valued at approximately $31,000. Institutional investors and hedge funds 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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