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

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

ResMed Stock Performance

RMD stock opened at $208.64 on Friday. The business has a 50 day moving average of $200.62 and a 200-day moving average of $228.44. The firm has a market cap of $30.27 billion, a PE ratio of 20.12, a P/E/G ratio of 1.21 and a beta of 0.78. ResMed Inc. has a 12-month low of $180.26 and a 12-month high of $293.81. 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) last posted 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. The business had revenue of $1.43 billion for the quarter, compared to analysts’ expectations of $1.42 billion. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The business’s revenue was up 10.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.37 earnings per share. As a group, sell-side analysts expect that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Announces Dividend

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

ResMed News Roundup

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed agreed to sell its MatrixCare business to Frazier Healthcare Partners for $490 million, a move that should sharpen the company’s focus on its core sleep and respiratory care franchises and could improve capital allocation. ResMed Analyst Backs Portfolio Reset
• Positive Sentiment: Analysts and market commentary highlighted the MatrixCare sale as a “portfolio reset,” which may be viewed as a strategic step toward higher-quality, more focused growth. ResMed sharpens core focus with US$490 million MatrixCare sale
• Positive Sentiment: Recent coverage also called ResMed a top momentum stock for the long term, reinforcing the view that investors still see durable trend strength in the name. Why ResMed (RMD) is a Top Momentum Stock for the Long-Term
• Neutral Sentiment: CEO Michael J. Farrell sold 4,991 shares under a pre-arranged 10b5-1 trading plan and also exercised options; because it was planned and routine, it is not necessarily a bearish signal, though insider selling can still draw attention. ResMed CEO Farrell Exercises Options and Trims Stake Under 10b5-1 Plan
• Neutral Sentiment: Wells Fargo slightly lowered its price target to $225 from $227 while keeping an equal-weight rating, suggesting a more cautious near-term view but not a major change in sentiment. Wells Fargo rating and target update

Institutional Investors Weigh In On ResMed

A number of institutional investors and hedge funds have recently modified their holdings of the company. Jones Financial Companies Lllp increased its holdings in ResMed by 52.6% during the 1st quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider’s stock worth $645,000 after acquiring an additional 994 shares during the period. Arrowstreet Capital Limited Partnership purchased a new position in shares of ResMed during the 2nd quarter valued at $389,000. Brown Advisory Inc. grew its position in shares of ResMed by 17.8% during the 2nd quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider’s stock valued at $409,000 after purchasing an additional 240 shares in the last quarter. Cresset Asset Management LLC bought a new position in shares of ResMed in the second quarter worth $206,000. Finally, Alliancebernstein L.P. increased its holdings in shares of ResMed by 24.2% in the second quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider’s stock worth $73,808,000 after purchasing an additional 55,790 shares during the period. 54.98% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

RMD has been the topic of a number of research analyst reports. Morgan Stanley reiterated an “equal weight” rating and issued a $230.00 target price (down from $286.00) on shares of ResMed in a research note on Wednesday, June 17th. Wall Street Zen lowered ResMed from a “buy” rating to a “hold” rating in a report on Saturday, March 14th. Evercore set a $255.00 target price on ResMed and gave the company an “outperform” rating in a research note on Monday, April 13th. The Goldman Sachs Group reiterated a “buy” rating on shares of ResMed in a research note on Wednesday, July 1st. Finally, Royal Bank Of Canada lowered 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. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, ResMed has a consensus rating of “Moderate Buy” and a consensus 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.