ResMed Inc. (NYSE:RMD – Get Free Report) was the target of unusually large options trading activity on Friday. Stock traders bought 2,608 put options on the company. This is an increase of 410% compared to the typical daily volume of 511 put options.
ResMed News Roundup
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
Insider Buying and Selling
In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction dated 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 $101,893,036.65. The trade was a 1.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,973 shares of company stock worth $3,096,067 over the last 90 days. 0.65% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
Analyst Ratings Changes
A number of research firms have recently weighed in on RMD. Citigroup dropped 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. JPMorgan Chase & Co. started coverage on ResMed in a research note on Wednesday, April 15th. They set an “overweight” rating on the stock. Morgan Stanley reaffirmed an “equal weight” rating and issued a $230.00 price objective (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. The Goldman Sachs Group reiterated a “buy” rating on shares of ResMed in a research report on Wednesday, July 1st. Finally, Weiss Ratings lowered ResMed from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, May 22nd. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $263.08.
ResMed Price Performance
Shares of ResMed stock traded down $4.28 on Friday, reaching $204.17. 1,331,127 shares of the stock were exchanged, compared to its average volume of 1,566,866. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01. The firm has a market cap of $29.62 billion, a PE ratio of 19.69, a P/E/G ratio of 1.25 and a beta of 0.78. The firm’s 50 day moving average is $200.46 and its 200-day moving average is $228.27. ResMed has a one year low of $180.26 and a one year high of $293.81.
ResMed (NYSE:RMD – Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.79 by $0.07. The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The company’s revenue was up 10.8% on a year-over-year basis. During the same period in the previous year, the business earned $2.37 earnings per share. As a group, analysts anticipate that ResMed will post 11.13 EPS for the current fiscal year.
ResMed Dividend Announcement
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, May 14th were given a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Thursday, May 14th. ResMed’s dividend payout ratio is currently 23.14%.
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.
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