Traders Buy Large Volume of Put Options on ResMed (NYSE:RMD)

ResMed Inc. (NYSE:RMD) was the recipient of unusually large options trading activity on Friday. Traders acquired 2,608 put options on the company. This is an increase of approximately 410% compared to the typical volume of 511 put options.

ResMed Stock Down 1.9%

ResMed stock traded down $4.01 during mid-day trading on Friday, hitting $204.44. The company had a trading volume of 316,597 shares, compared to its average volume of 1,279,212. 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 has a 1 year low of $180.26 and a 1 year high of $293.81. The business has a fifty day moving average of $200.62 and a 200 day moving average of $228.44. The stock has a market cap of $29.66 billion, a price-to-earnings ratio of 19.69, a PEG ratio of 1.21 and a beta of 0.78.

ResMed (NYSE:RMD) last announced its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The firm had revenue of $1.43 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the previous year, the company earned $2.37 earnings per share. ResMed’s quarterly revenue was up 10.8% compared to the same quarter last year. On average, sell-side analysts expect that ResMed will post 11.13 earnings per share for the current fiscal year.

ResMed Dividend Announcement

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

Insiders Place Their Bets

In related news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction that occurred on 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 completion of the sale, the chief executive officer owned 466,223 shares in the company, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,973 shares of company stock valued at $3,096,067. 0.65% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ResMed

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. International Assets Investment Management LLC acquired a new position in shares of ResMed in the 4th quarter valued at $25,000. ORG Partners LLC boosted its stake 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 purchasing an additional 69 shares during the period. Imprint Wealth LLC acquired a new stake in ResMed during the 3rd quarter worth $26,000. WFA of San Diego LLC purchased a new position in ResMed during the 2nd quarter worth $26,000. Finally, Sunbelt Securities Inc. purchased a new position in ResMed during the 3rd quarter worth $31,000. Hedge funds and other institutional investors own 54.98% of the company’s stock.

Analyst Ratings Changes

RMD has been the subject of a number of research reports. The Goldman Sachs Group reaffirmed a “buy” rating on shares of ResMed in a research note on Wednesday, July 1st. Evercore set a $255.00 target price on ResMed and gave the stock an “outperform” rating in a research note on Monday, April 13th. Weiss Ratings cut ResMed from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, May 22nd. JPMorgan Chase & Co. began coverage on shares of ResMed in a report on Wednesday, April 15th. They issued an “overweight” rating for the company. Finally, Citigroup decreased their price target on shares of ResMed from $340.00 to $270.00 and set a “buy” rating for the company in a research report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, ResMed has an average rating of “Moderate Buy” and an average price target of $266.55.

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.