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

ResMed Inc. (NYSE:RMD)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $237.27, but opened at $230.21. ResMed shares last traded at $226.68, with a volume of 172,866 shares trading hands.

Analyst Ratings Changes

Several research analysts recently issued reports on RMD shares. Wolfe Research restated an “underperform” rating and set a $180.00 price objective on shares of ResMed in a research report on Wednesday, September 18th. Baird R W raised ResMed to a “strong-buy” rating in a research report on Tuesday, September 24th. KeyCorp increased their target price on shares of ResMed from $251.00 to $266.00 and gave the stock an “overweight” rating in a research report on Friday, October 25th. Needham & Company LLC reiterated a “hold” rating on shares of ResMed in a research note on Friday, October 25th. Finally, Stifel Nicolaus assumed coverage on shares of ResMed in a research note on Friday, December 13th. They set a “hold” rating and a $250.00 price target on the stock. One analyst has rated the stock with a sell rating, six have given a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, ResMed presently has an average rating of “Moderate Buy” and a consensus target price of $227.91.

ResMed Stock Performance

The stock’s fifty day moving average is $242.72 and its two-hundred day moving average is $228.69. The firm has a market cap of $33.43 billion, a price-to-earnings ratio of 30.16, a PEG ratio of 1.73 and a beta of 0.68. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.91 and a current ratio of 2.92.

ResMed (NYSE:RMD) last posted its quarterly earnings data on Thursday, October 24th. The medical equipment provider reported $2.20 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.17. ResMed had a net margin of 23.15% and a return on equity of 25.53%. The business had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the prior year, the company posted $1.64 earnings per share. The company’s quarterly revenue was up 11.1% compared to the same quarter last year. On average, analysts expect that ResMed Inc. will post 9.34 earnings per share for the current fiscal year.

ResMed Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Thursday, November 7th were paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.93%. The ex-dividend date was Thursday, November 7th. ResMed’s dividend payout ratio is presently 28.08%.

Insider Transactions at ResMed

In other news, Director Witte Jan De sold 796 shares of the business’s stock in a transaction on Tuesday, November 12th. The shares were sold at an average price of $248.81, for a total transaction of $198,052.76. Following the transaction, the director now directly owns 6,723 shares in the company, valued at $1,672,749.63. The trade was a 10.59 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Michael J. Farrell sold 14,683 shares of the business’s stock in a transaction dated Monday, October 7th. The shares were sold at an average price of $231.91, for a total value of $3,405,134.53. Following the completion of the transaction, the chief executive officer now owns 464,169 shares in the company, valued at $107,645,432.79. This trade represents a 3.07 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 47,725 shares of company stock valued at $11,253,448 in the last three months. 0.71% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On ResMed

Several large investors have recently made changes to their positions in the company. True Wealth Design LLC grew its position in ResMed by 2,200.0% in the third quarter. True Wealth Design LLC now owns 115 shares of the medical equipment provider’s stock worth $28,000 after acquiring an additional 110 shares in the last quarter. Ashton Thomas Securities LLC bought a new position in ResMed during the third quarter valued at about $34,000. Financial Connections Group Inc. bought a new stake in shares of ResMed during the 2nd quarter worth about $37,000. Rothschild Investment LLC bought a new stake in shares of ResMed during the 2nd quarter worth about $44,000. Finally, Capital Performance Advisors LLP acquired a new position in shares of ResMed during the 3rd quarter valued at about $60,000. Institutional investors own 54.98% of the company’s stock.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.