ResMed (NYSE:RMD) Sets New 52-Week Low on Insider Selling

ResMed Inc. (NYSE:RMD)’s share price hit a new 52-week low during mid-day trading on Monday following insider selling activity. The company traded as low as $198.61 and last traded at $199.1710, with a volume of 1072585 shares. The stock had previously closed at $206.76.

Specifically, CEO Michael J. Farrell sold 4,991 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $207.82, for a total value of $1,037,229.62. Following the transaction, the chief executive officer owned 466,223 shares in the company, valued at approximately $96,890,463.86. The trade was a 1.06% decrease in their ownership of the stock. 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.

Wall Street Analysts Forecast Growth

RMD has been the topic of several recent analyst reports. Robert W. Baird set a $225.00 price target on ResMed in a research note on Friday, May 1st. Weiss Ratings downgraded shares of ResMed from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, March 19th. Evercore set a $255.00 target price on shares of ResMed and gave the stock an “outperform” rating in a research report on Monday, April 13th. Wells Fargo & Company reduced their target price on ResMed from $270.00 to $227.00 and set an “equal weight” rating on the stock in a report on Friday, May 1st. Finally, Royal Bank Of Canada increased their target price on ResMed from $314.00 to $321.00 and gave the stock an “outperform” rating in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $286.18.

ResMed Trading Down 3.6%

The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06. The firm has a market cap of $29.03 billion, a P/E ratio of 19.19, a P/E/G ratio of 1.32 and a beta of 0.84. The business’s 50-day moving average is $230.41 and its two-hundred day moving average is $245.04.

ResMed (NYSE:RMD) last posted its earnings results 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 company 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 firm’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same period last year, the business posted $2.37 earnings per share. As a group, analysts expect that ResMed Inc. will post 11.13 earnings per share for the current fiscal year.

ResMed Announces Dividend

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

Institutional Investors Weigh In On ResMed

A number of hedge funds have recently added to or reduced their stakes in RMD. International Assets Investment Management LLC bought a new position in ResMed in the 4th quarter worth approximately $25,000. ORG Partners LLC grew its holdings in ResMed by 181.6% in the 4th quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider’s stock worth $26,000 after buying an additional 69 shares in the last quarter. Imprint Wealth LLC bought a new position in ResMed in the 3rd quarter worth approximately $26,000. WFA of San Diego LLC bought a new position in ResMed in the 2nd quarter worth approximately $26,000. Finally, Sunbelt Securities Inc. bought a new position in ResMed in the 3rd quarter worth approximately $31,000. 54.98% of the stock is currently owned by institutional investors.

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.