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

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 changing hands.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Wolfe Research restated an “underperform” rating and set a $180.00 price target on shares of ResMed in a research report on Wednesday, September 18th. Needham & Company LLC restated a “hold” rating on shares of ResMed in a research report on Friday, October 25th. Robert W. Baird boosted their price objective on ResMed from $280.00 to $283.00 and gave the company an “outperform” rating in a research report on Friday, October 25th. Royal Bank of Canada lifted their target price on shares of ResMed from $224.00 to $232.00 and gave the stock a “sector perform” rating in a research note on Friday, October 25th. Finally, KeyCorp increased their price target on shares of ResMed from $251.00 to $266.00 and gave the company an “overweight” rating in a research report on Friday, October 25th. One analyst has rated the stock with a sell rating, six have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company has a consensus 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 quick ratio of 1.91 and a current ratio of 2.92. The company’s 50-day moving average price is $242.53 and its 200 day moving average price is $228.83. The stock has a market capitalization of $34.14 billion, a PE ratio of 30.81, a PEG ratio of 1.73 and a beta of 0.68.

ResMed (NYSE:RMD) last issued its quarterly earnings data on Thursday, October 24th. The medical equipment provider reported $2.20 EPS 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 analyst estimates of $1.19 billion. During the same period last year, the business posted $1.64 earnings per share. ResMed’s quarterly revenue was up 11.1% compared to the same quarter last year. On average, equities research analysts expect that ResMed Inc. will post 9.34 earnings per share for the current fiscal year.

ResMed Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Thursday, November 7th were paid a $0.53 dividend. The ex-dividend date was Thursday, November 7th. This represents a $2.12 annualized dividend and a yield of 0.91%. ResMed’s payout ratio is 28.08%.

Insiders Place Their Bets

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 transaction of $1,015,924.80. Following the completion of the transaction, the insider now owns 21,788 shares of the company’s stock, valued at approximately $5,196,002.24. This trade represents a 16.35 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peter C. Farrell sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $245.65, for a total value of $491,300.00. Following the completion of the sale, the director now directly owns 81,218 shares in the company, valued at approximately $19,951,201.70. This represents a 2.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 47,725 shares of company stock worth $11,253,448. 0.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ResMed

Several institutional investors and hedge funds have recently modified their holdings of RMD. True Wealth Design LLC boosted its stake in ResMed by 2,200.0% in 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 purchased a new position in ResMed in the third quarter worth about $34,000. Rothschild Investment LLC bought a new position in shares of ResMed in the second quarter worth approximately $44,000. Capital Performance Advisors LLP purchased a new stake in shares of ResMed during the third quarter valued at approximately $60,000. Finally, Quest Partners LLC increased its position in shares of ResMed by 44.1% during the second quarter. Quest Partners LLC now owns 327 shares of the medical equipment provider’s stock valued at $63,000 after acquiring an additional 100 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors.

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.