Insider Selling: ResMed (NYSE:RMD) CEO Sells $1,037,229.62 in Stock

ResMed Inc. (NYSE:RMD) CEO Michael Farrell sold 4,991 shares of ResMed stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $207.82, for a total transaction of $1,037,229.62. Following the transaction, the chief executive officer directly owned 466,223 shares of the company’s stock, valued at $96,890,463.86. The trade was a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ResMed Stock Down 0.7%

NYSE RMD opened at $202.42 on Thursday. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. The company has a fifty day moving average of $226.19 and a two-hundred day moving average of $243.21. The firm has a market capitalization of $29.49 billion, a price-to-earnings ratio of 19.52, a PEG ratio of 1.30 and a beta of 0.84. ResMed Inc. has a 52 week low of $198.61 and a 52 week high of $293.81.

ResMed (NYSE:RMD) last posted its quarterly earnings data 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 during the quarter, compared to analyst estimates of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. ResMed’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.37 earnings per share. On average, analysts predict that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Dividend Announcement

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

Wall Street Analyst Weigh In

Several analysts have recently weighed in on RMD shares. Wells Fargo & Company decreased their target price on ResMed from $270.00 to $227.00 and set an “equal weight” rating for the company in a research report on Friday, May 1st. Stifel Nicolaus lifted their target price on ResMed from $260.00 to $265.00 and gave the stock a “hold” rating in a research report on Friday, January 30th. Weiss Ratings downgraded ResMed from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, March 19th. Citigroup decreased their target price on ResMed from $345.00 to $340.00 and set a “buy” rating for the company in a research report on Thursday, April 9th. Finally, JPMorgan Chase & Co. started coverage on ResMed in a research report on Wednesday, April 15th. They set an “overweight” rating for the company. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $286.18.

Institutional Trading of ResMed

Several institutional investors and hedge funds have recently made changes to their positions in RMD. First Trust Advisors LP raised its holdings in shares of ResMed by 240.9% in the fourth quarter. First Trust Advisors LP now owns 1,517,592 shares of the medical equipment provider’s stock valued at $365,542,000 after acquiring an additional 1,072,394 shares in the last quarter. Norges Bank bought a new stake in shares of ResMed in the fourth quarter valued at about $249,068,000. Deutsche Bank AG raised its holdings in shares of ResMed by 126.0% in the fourth quarter. Deutsche Bank AG now owns 1,413,477 shares of the medical equipment provider’s stock valued at $340,464,000 after acquiring an additional 787,949 shares in the last quarter. Morgan Stanley raised its holdings in shares of ResMed by 25.0% in the fourth quarter. Morgan Stanley now owns 2,891,697 shares of the medical equipment provider’s stock valued at $696,523,000 after acquiring an additional 578,559 shares in the last quarter. Finally, Swedbank AB raised its holdings in shares of ResMed by 103.1% in the fourth quarter. Swedbank AB now owns 1,102,476 shares of the medical equipment provider’s stock valued at $265,553,000 after acquiring an additional 559,765 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors.

About ResMed

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.