Key Points
- ResMed CEO Michael Farrell sold 4,991 shares for approximately $1.03 million under a pre-arranged Rule 10b5-1 trading plan, reducing his holdings by 1.06% to 466,256 shares.
- ResMed exceeded quarterly earnings expectations, reporting $2.95 in adjusted EPS versus the $2.89 consensus, while revenue rose 8.6% year over year to $1.46 billion.
- The company raised its quarterly dividend to $0.66 per share, equivalent to a $2.64 annualized payout and a 1.2% yield; analysts maintain a consensus “Hold” rating with an average price target of $240.17.
ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 4,991 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the transaction, the chief executive officer owned 466,256 shares of the company's stock, valued at approximately $95,904,196.64. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
ResMed Stock Up 2.2%
NYSE RMD opened at $224.91 on Wednesday. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. The company's 50 day simple moving average is $202.00 and its 200 day simple moving average is $221.50. ResMed Inc. has a 12 month low of $180.26 and a 12 month high of $293.81. The company has a market capitalization of $32.63 billion, a P/E ratio of 21.56, a PEG ratio of 1.38 and a beta of 0.76.
ResMed (NYSE:RMD - Get Free Report) last issued its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, topping analysts' consensus estimates of $2.89 by $0.06. The firm had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.46 billion. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The firm's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period last year, the firm posted $2.55 earnings per share. Equities research analysts expect that ResMed Inc. will post 12 earnings per share for the current fiscal year.
ResMed Increases Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.66 per share. This is a boost from ResMed's previous quarterly dividend of $0.60. The ex-dividend date is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.2%. ResMed's payout ratio is currently 23.01%.
Wall Street Analysts Forecast Growth
RMD has been the topic of a number of recent research reports. Mizuho decreased their target price on ResMed from $235.00 to $220.00 and set an "outperform" rating on the stock in a report on Wednesday, July 15th. Citigroup reaffirmed a "neutral" rating and set a $235.00 target price (down from $270.00) on shares of ResMed in a report on Sunday, July 12th. Piper Sandler decreased their price target on ResMed from $233.00 to $225.00 and set a "neutral" rating for the company in a research report on Friday, August 7th. Morgan Stanley reissued an "equal weight" rating and issued a $230.00 price target (down from $286.00) on shares of ResMed in a research note on Wednesday, June 17th. Finally, UBS Group restated a "buy" rating and set a $300.00 price objective on shares of ResMed in a report on Tuesday, July 21st. Seven research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $240.17.
Check Out Our Latest Report on ResMed
Hedge Funds Weigh In On ResMed
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in ResMed during the 2nd quarter valued at $2,400,375,000. Bank of New York Mellon Corp acquired a new stake in shares of ResMed in the second quarter worth $818,030,000. Deutsche Bank AG purchased a new position in shares of ResMed during the second quarter valued at $257,692,000. First Trust Advisors LP grew its holdings in shares of ResMed by 240.9% during 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 buying an additional 1,072,394 shares in the last quarter. Finally, Norges Bank acquired a new position in ResMed during the fourth quarter valued at $249,068,000. 54.98% of the stock is currently owned by hedge funds and other institutional investors.
About ResMed
(
Get Free Report)
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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