ResMed (NYSE:RMD) Shares Gap Up After Dividend Announcement

Shares of ResMed Inc. (NYSE:RMD) gapped up prior to trading on Thursday following a dividend announcement from the company. The stock had previously closed at $214.44, but opened at $233.19. ResMed shares last traded at $234.68, with a volume of 520,597 shares traded.

The newly announced dividend which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 8th will be paid a $0.53 dividend. The ex-dividend date of this dividend is Thursday, May 8th. This represents a $2.12 annualized dividend and a dividend yield of 0.90%. ResMed’s dividend payout ratio (DPR) is currently 25.03%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. increased their price target on ResMed from $286.00 to $290.00 and gave the stock an “overweight” rating in a report on Thursday. KeyCorp set a $274.00 target price on shares of ResMed in a report on Thursday. Piper Sandler dropped their price target on shares of ResMed from $260.00 to $248.00 and set a “neutral” rating on the stock in a research note on Thursday. Mizuho set a $265.00 price objective on shares of ResMed in a research report on Wednesday, April 16th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of ResMed in a research report on Friday, January 31st. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $254.31.

ResMed Stock Up 10.1 %

The firm has a market cap of $34.68 billion, a price-to-earnings ratio of 27.88, a P/E/G ratio of 1.53 and a beta of 0.75. The firm has a 50 day moving average price of $221.81 and a 200-day moving average price of $234.05. The company has a current ratio of 3.33, a quick ratio of 2.29 and a debt-to-equity ratio of 0.13.

ResMed (NYSE:RMD) last announced its earnings results on Wednesday, April 23rd. The medical equipment provider reported $2.37 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.37. The company had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.28 billion. ResMed had a net margin of 25.34% and a return on equity of 26.17%. On average, equities analysts forecast that ResMed Inc. will post 9.47 EPS for the current year.

Insider Activity at ResMed

In related news, Director Peter C. Farrell sold 2,000 shares of the business’s stock in a transaction dated Wednesday, April 2nd. The shares were sold at an average price of $219.74, for a total value of $439,480.00. Following the completion of the transaction, the director now owns 73,218 shares of the company’s stock, valued at approximately $16,088,923.32. The trade was a 2.66 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the firm’s stock in a transaction dated Monday, April 7th. The stock was sold at an average price of $209.85, for a total transaction of $1,680,688.65. Following the sale, the chief executive officer now directly owns 455,472 shares in the company, valued at $95,580,799.20. This represents a 1.73 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 49,013 shares of company stock valued at $11,298,816. 0.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ResMed

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its stake in ResMed by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 18,173,462 shares of the medical equipment provider’s stock worth $4,156,089,000 after acquiring an additional 160,590 shares during the period. Geode Capital Management LLC grew its position in shares of ResMed by 2.2% in the fourth quarter. Geode Capital Management LLC now owns 3,944,084 shares of the medical equipment provider’s stock valued at $899,860,000 after purchasing an additional 85,270 shares during the period. Invesco Ltd. increased its stake in ResMed by 32.2% in the fourth quarter. Invesco Ltd. now owns 2,325,009 shares of the medical equipment provider’s stock valued at $531,706,000 after purchasing an additional 566,046 shares during the last quarter. Northern Trust Corp increased its stake in ResMed by 20.6% in the fourth quarter. Northern Trust Corp now owns 1,702,590 shares of the medical equipment provider’s stock valued at $389,365,000 after purchasing an additional 290,664 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its position in ResMed by 3.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 957,020 shares of the medical equipment provider’s stock worth $218,861,000 after buying an additional 32,973 shares during the period. Institutional investors and hedge funds 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.