ResMed (NYSE:RMD) Shares Gap Down – What’s Next?

Shares of ResMed Inc. (NYSE:RMD) gapped down before the market opened 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 Upgrades and Downgrades

A number of equities analysts have recently commented on RMD shares. KeyCorp lifted their price objective on ResMed from $251.00 to $266.00 and gave the stock an “overweight” rating in a research note on Friday, October 25th. Stifel Nicolaus began coverage on ResMed in a research report on Friday, December 13th. They issued a “hold” rating and a $250.00 price objective for the company. Bank of America upped their price objective on shares of ResMed from $240.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, September 26th. Robert W. Baird boosted their price target on ResMed from $280.00 to $283.00 and gave the company an “outperform” rating in a research note on Friday, October 25th. Finally, Royal Bank of Canada lifted their price objective on ResMed from $224.00 to $232.00 and gave the stock a “sector perform” rating in a report on Friday, October 25th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, six have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $227.91.

ResMed Stock Down 4.0 %

The stock 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. The firm’s 50-day simple moving average is $242.72 and its two-hundred day simple moving average is $228.69.

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. The firm had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.19 billion. ResMed had a net margin of 23.15% and a return on equity of 25.53%. ResMed’s revenue was up 11.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.64 EPS. On average, sell-side analysts expect that ResMed Inc. will post 9.34 EPS for the current fiscal year.

ResMed Dividend Announcement

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

Insider Transactions at ResMed

In related news, CEO Michael J. Farrell sold 14,683 shares of the firm’s stock in a transaction on Monday, October 7th. The shares were sold at an average price of $231.91, for a total transaction of $3,405,134.53. Following the sale, the chief executive officer now directly owns 464,169 shares in the company, valued at $107,645,432.79. This trade represents a 3.07 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction dated Wednesday, October 2nd. The stock was sold at an average price of $237.20, for a total value of $474,400.00. Following the transaction, the director now owns 85,204 shares of the company’s stock, valued at approximately $20,210,388.80. This trade represents a 2.29 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 47,725 shares of company stock valued at $11,253,448 over the last three months. 0.71% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ResMed

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

ResMed Company Profile

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.