Insider Selling: ResMed (NYSE:RMD) CEO Sells $1,090,783.05 in Stock

ResMed Inc. (NYSE:RMD) CEO Michael Farrell sold 4,991 shares of the stock in a transaction on Tuesday, July 7th. The shares were 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 legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ResMed Trading Down 2.1%

ResMed stock traded down $4.28 during mid-day trading on Friday, hitting $204.17. The company’s stock had a trading volume of 1,331,127 shares, compared to its average volume of 1,566,866. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33. The stock has a market cap of $29.62 billion, a price-to-earnings ratio of 19.69, a price-to-earnings-growth ratio of 1.22 and a beta of 0.78. The business has a 50 day moving average price of $200.46 and a 200-day moving average price of $228.27. ResMed Inc. has a 12 month low of $180.26 and a 12 month high of $293.81.

ResMed (NYSE:RMD) last announced its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.79 by $0.07. The firm 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 company’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same period last year, the firm earned $2.37 earnings per share. As a group, analysts forecast that ResMed Inc. will post 11.13 EPS for the current year.

ResMed Dividend Announcement

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

ResMed News Summary

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed’s sale of MatrixCare should simplify the portfolio, increase focus on higher-growth core franchises, and potentially improve capital allocation. Resmed Divests MatrixCare Business to Sharpen Focus on Connected Care
• Positive Sentiment: Analyst commentary has described the transaction as a “portfolio reset,” which suggests the market may view the move as strategically constructive for long-term growth. ResMed (RMD) Sells MatrixCare To Refocus On Sleep And Respiratory Health
• Positive Sentiment: Brokerage coverage remained supportive, with multiple firms reiterating buy-type ratings, reinforcing confidence in ResMed’s core business despite the divestiture. Resmed Inc CHESS Depositary Interests … Gets a Buy from Morgans
• Neutral Sentiment: Unusually large put-option activity suggests some traders are hedging or betting on downside, but it does not confirm a change in the company’s fundamentals.
• Neutral Sentiment: CEO Michael Farrell’s recent stock sale was made under a pre-arranged 10b5-1 plan, making it more routine than a clear bearish signal, though insider selling can still weigh on sentiment. Insider Selling: ResMed (NYSE:RMD) CEO Sells $1,090,783.05 in Stock

Analyst Ratings Changes

A number of analysts have recently weighed in on RMD shares. Wells Fargo & Company dropped their target price on shares of ResMed from $227.00 to $225.00 and set an “equal weight” rating for the company in a report on Wednesday. The Goldman Sachs Group restated a “buy” rating on shares of ResMed in a report on Wednesday, July 1st. Morgan Stanley reaffirmed an “equal weight” rating and set a $230.00 price target (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Evercore set a $255.00 price objective on ResMed and gave the stock an “outperform” rating in a report on Monday, April 13th. Finally, Wall Street Zen cut ResMed from a “buy” rating to a “hold” rating in a report on Saturday, March 14th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $263.08.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RMD. Tema ETFs LLC raised its position in shares of ResMed by 50.8% in the 2nd quarter. Tema ETFs LLC now owns 3,174 shares of the medical equipment provider’s stock worth $619,000 after acquiring an additional 1,069 shares in the last quarter. Handelsbanken Fonder AB boosted its position in shares of ResMed by 36.6% during the second quarter. Handelsbanken Fonder AB now owns 94,895 shares of the medical equipment provider’s stock valued at $18,493,000 after purchasing an additional 25,419 shares in the last quarter. Czech National Bank grew its stake in ResMed by 4.1% in the second quarter. Czech National Bank now owns 41,288 shares of the medical equipment provider’s stock worth $8,046,000 after purchasing an additional 1,613 shares during the period. PensionDanmark Pensionsforsikringsaktieselskab grew its stake in ResMed by 1.6% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 28,330 shares of the medical equipment provider’s stock worth $5,521,000 after purchasing an additional 450 shares during the period. Finally, Assenagon Asset Management S.A. grew its stake in ResMed by 48.2% in the second quarter. Assenagon Asset Management S.A. now owns 83,852 shares of the medical equipment provider’s stock worth $16,341,000 after purchasing an additional 27,282 shares during the period. Hedge funds and other institutional investors own 54.98% of the company’s stock.

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.