ResMed (NYSE:RMD) Shares Gap Down – Here’s Why

Shares of ResMed Inc. (NYSE:RMD) gapped down prior to trading on Monday . The stock had previously closed at $203.87, but opened at $193.72. ResMed shares last traded at $199.27, with a volume of 282,707 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Robert W. Baird set a $225.00 target price on shares of ResMed in a research report on Friday, May 1st. JPMorgan Chase & Co. started coverage on ResMed in a report on Wednesday, April 15th. They issued an “overweight” rating for the company. Citigroup reaffirmed a “neutral” rating and set a $235.00 price target (down from $270.00) on shares of ResMed in a research report on Sunday. Wells Fargo & Company dropped their price target on ResMed from $227.00 to $225.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 8th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of ResMed in a research report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $260.17.

ResMed Price Performance

The business has a fifty day moving average of $199.87 and a 200-day moving average of $227.45. The firm has a market cap of $28.04 billion, a PE ratio of 18.64, a PEG ratio of 1.19 and a beta of 0.78. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06.

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 the consensus estimate of $2.79 by $0.07. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The firm had revenue of $1.43 billion for the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the prior year, the business posted $2.37 earnings per share. The company’s revenue was up 10.8% on a year-over-year basis. As a group, research analysts predict that ResMed Inc. will post 11.13 earnings per share for the current year.

ResMed Dividend Announcement

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

Insider Buying and Selling

In other news, CEO Michael J. Farrell sold 4,991 shares of the company’s stock in a transaction 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 transaction, the chief executive officer owned 466,223 shares of the company’s stock, valued at approximately $101,893,036.65. This represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 14,973 shares of company stock valued at $3,096,067. 0.65% of the stock is owned by company insiders.

Hedge Funds Weigh In On ResMed

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RMD. State Street Corp boosted its position in shares of ResMed by 1.2% during the 4th quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider’s stock valued at $1,595,862,000 after acquiring an additional 76,244 shares during the last quarter. Bank of New York Mellon Corp increased its position in shares of ResMed by 0.7% in the first quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider’s stock worth $1,105,651,000 after purchasing an additional 34,732 shares during the last quarter. Geode Capital Management LLC increased its position in shares of ResMed by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider’s stock worth $1,032,877,000 after purchasing an additional 51,218 shares during the last quarter. Morgan Stanley raised its stake in 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 purchasing an additional 578,559 shares in the last quarter. Finally, Northern Trust Corp raised its stake in ResMed by 5.2% in the fourth quarter. Northern Trust Corp now owns 1,785,384 shares of the medical equipment provider’s stock valued at $430,045,000 after purchasing an additional 87,502 shares in the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

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.