ResMed (NYSE:RMD) Shares Gap Down – Time to Sell?

ResMed Inc. (NYSE:RMD)’s share price 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.

Wall Street Analysts Forecast Growth

RMD has been the subject of a number of research analyst reports. KeyCorp lifted their target price on ResMed from $251.00 to $266.00 and gave the stock an “overweight” rating in a report on Friday, October 25th. Royal Bank of Canada lifted their price objective on shares of ResMed from $224.00 to $232.00 and gave the company a “sector perform” rating in a research note on Friday, October 25th. StockNews.com upgraded shares of ResMed from a “hold” rating to a “buy” rating in a report on Tuesday, October 15th. Stifel Nicolaus initiated coverage on shares of ResMed in a report on Friday, December 13th. They set a “hold” rating and a $250.00 price objective on the stock. Finally, Robert W. Baird raised their target price on ResMed from $280.00 to $283.00 and gave the company an “outperform” rating in a research note on Friday, October 25th. One analyst has rated the stock with a sell rating, six have issued a hold rating, six have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $227.91.

ResMed Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.92 and a quick ratio of 1.91. The company’s fifty day moving average price is $242.53 and its 200 day moving average price is $228.83. The company has a market cap of $34.14 billion, a PE ratio of 30.81, a P/E/G ratio of 1.73 and a beta of 0.68.

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

ResMed Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Thursday, November 7th were issued 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 0.91%. ResMed’s dividend payout ratio (DPR) is presently 28.08%.

Insider Activity

In other news, insider Justin Leong sold 6,160 shares of the stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $243.09, for a total value of $1,497,434.40. Following the sale, the insider now directly owns 21,718 shares of the company’s stock, valued at approximately $5,279,428.62. This represents a 22.10 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Peter C. Farrell sold 2,000 shares of the firm’s stock in a transaction on Wednesday, October 2nd. The shares were sold at an average price of $237.20, for a total transaction of $474,400.00. Following the completion of the transaction, the director now directly owns 85,204 shares of the company’s stock, valued at approximately $20,210,388.80. The trade was a 2.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 47,725 shares of company stock valued at $11,253,448 in the last 90 days. Insiders own 0.71% of the company’s stock.

Hedge Funds Weigh In On ResMed

A number of hedge funds and other institutional investors have recently bought and sold shares of RMD. True Wealth Design LLC lifted its holdings 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 acquiring an additional 110 shares during the last quarter. Ashton Thomas Securities LLC bought a new stake in ResMed during the third quarter worth about $34,000. Rothschild Investment LLC purchased a new position in shares of ResMed in the 2nd quarter worth about $44,000. Capital Performance Advisors LLP bought a new position in shares of ResMed during the 3rd quarter valued at about $60,000. Finally, Quest Partners LLC raised its holdings in shares of ResMed by 44.1% during the 2nd quarter. Quest Partners LLC now owns 327 shares of the medical equipment provider’s stock valued at $63,000 after buying an additional 100 shares in the last quarter. 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.