ResMed (NYSE:RMD) Trading Down 2.8% – Here’s Why

ResMed Inc. (NYSE:RMD) fell 2.8% during mid-day trading on Monday . The company traded as low as $248.09 and last traded at $248.84. 727,312 shares traded hands during trading, a decline of 30% from the average session volume of 1,044,494 shares. The stock had previously closed at $256.07.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Wolfe Research reaffirmed an “underperform” rating and issued a $180.00 price target on shares of ResMed in a report on Wednesday, September 18th. StockNews.com upgraded ResMed from a “hold” rating to a “buy” rating in a research note on Tuesday, October 15th. Baird R W upgraded ResMed to a “strong-buy” rating in a research report on Tuesday, September 24th. Royal Bank of Canada upped their price objective on ResMed from $224.00 to $232.00 and gave the stock a “sector perform” rating in a research report on Friday, October 25th. Finally, Robert W. Baird raised their price objective on shares of ResMed from $280.00 to $283.00 and gave the stock an “outperform” rating in a research note on Friday, October 25th. One analyst has rated the stock with a sell rating, five have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $225.70.

ResMed Price Performance

The company has a quick ratio of 1.91, a current ratio of 2.92 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $35.67 billion, a price-to-earnings ratio of 32.37, a PEG ratio of 2.05 and a beta of 0.69. The stock’s 50-day simple moving average is $241.53 and its two-hundred day simple moving average is $218.98.

ResMed (NYSE:RMD) last released its quarterly earnings results 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 firm 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 firm earned $1.64 EPS. The company’s revenue for the quarter was up 11.1% on a year-over-year basis. Equities research analysts predict that ResMed Inc. will post 9.16 earnings per share for the current year.

ResMed Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 12th. Stockholders of record on Thursday, November 7th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.87%. The ex-dividend date of this dividend is Thursday, November 7th. ResMed’s dividend payout ratio (DPR) is 28.08%.

Insider Buying and Selling

In other ResMed news, insider Kaushik Ghoshal sold 4,260 shares of the firm’s stock in a transaction that occurred on Friday, October 11th. The shares were sold at an average price of $238.48, for a total value of $1,015,924.80. Following the transaction, the insider now directly owns 21,788 shares of the company’s stock, valued at $5,196,002.24. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In other news, insider Justin Leong sold 48,000 shares of the stock in a transaction that occurred on Monday, August 5th. The shares were sold at an average price of $217.07, for a total value of $10,419,360.00. Following the completion of the sale, the insider now owns 18,741 shares of the company’s stock, valued at $4,068,108.87. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Kaushik Ghoshal sold 4,260 shares of ResMed stock in a transaction that occurred on Friday, October 11th. The shares were sold at an average price of $238.48, for a total transaction of $1,015,924.80. Following the sale, the insider now directly owns 21,788 shares in the company, valued at approximately $5,196,002.24. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 123,874 shares of company stock worth $28,151,142. 0.71% of the stock is owned by insiders.

Institutional Investors Weigh In On ResMed

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp increased its position in shares of ResMed by 51.4% during the 2nd quarter. Bank of New York Mellon Corp now owns 5,772,761 shares of the medical equipment provider’s stock worth $1,105,022,000 after purchasing an additional 1,959,642 shares during the last quarter. Marshall Wace LLP purchased a new stake in shares of ResMed in the 2nd quarter valued at approximately $77,285,000. Greenvale Capital LLP lifted its holdings in shares of ResMed by 61.1% in the 2nd quarter. Greenvale Capital LLP now owns 725,000 shares of the medical equipment provider’s stock worth $138,780,000 after acquiring an additional 275,000 shares during the last quarter. Los Angeles Capital Management LLC boosted its position in shares of ResMed by 48.3% during the 2nd quarter. Los Angeles Capital Management LLC now owns 740,226 shares of the medical equipment provider’s stock worth $141,694,000 after purchasing an additional 241,195 shares during the period. Finally, Renaissance Technologies LLC acquired a new stake in ResMed in the 2nd quarter valued at approximately $42,036,000. Hedge funds and other 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.