Investors Buy ResMed Inc. (RMD) on Weakness After Insider Selling
Investors bought shares of ResMed Inc. (NYSE:RMD) on weakness during trading hours on Wednesday after an insider sold shares in the company. $16.05 million flowed into the stock on the tick-up and $6.15 million flowed out of the stock on the tick-down, for a money net flow of $9.90 million into the stock. Of all companies tracked, ResMed had the 31st highest net in-flow for the day. ResMed traded down ($0.47) for the day and closed at $64.52Specifically, Director Richard Sulpizio sold 36,000 shares of the firm’s stock in a transaction on Wednesday, August 10th. The shares were sold at an average price of C$70.15, for a total value of C$2,525,400.00. Following the completion of the transaction, the director now directly owns 101,887 shares of the company’s stock, valued at C$7,147,373.05. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Brett Sandercock sold 35,000 shares of the firm’s stock in a transaction on Thursday, August 11th. The shares were sold at an average price of C$70.50, for a total transaction of C$2,467,500.00. The disclosure for this sale can be found here. Insiders own 1.97% of the company’s stock.
A number of research analysts recently weighed in on RMD shares. Bank of America Corp. reissued a “hold” rating and issued a $65.00 target price on shares of ResMed in a report on Sunday, July 10th. JPMorgan Chase & Co. started coverage on shares of ResMed in a report on Tuesday, October 4th. They issued a “neutral” rating and a $64.00 target price for the company. Zacks Investment Research raised shares of ResMed from a “sell” rating to a “hold” rating in a research note on Tuesday, July 26th. Needham & Company LLC lowered shares of ResMed from a “hold” rating to an “underperform” rating in a research note on Monday, June 27th. Finally, Jefferies Group lowered shares of ResMed from a “hold” rating to an “underperform” rating and dropped their price objective for the stock from $60.00 to $58.00 in a research note on Tuesday, August 23rd. Five investment analysts have rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the company. The stock has an average rating of “Hold” and an average price target of C$60.44.
The firm’s 50 day moving average is $64.92 and its 200-day moving average is $62.92. The stock has a market capitalization of $9.08 billion, a PE ratio of 25.91 and a beta of 0.68.
ResMed (NYSE:RMD) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.74 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.74. ResMed had a return on equity of 23.89% and a net margin of 18.63%. The firm earned $518.60 million during the quarter, compared to the consensus estimate of $512.37 million. During the same period in the prior year, the company earned $0.68 EPS. The firm’s revenue was up 14.5% compared to the same quarter last year. Analysts anticipate that ResMed Inc. will post $2.88 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 22nd. Investors of record on Thursday, August 18th were paid a $0.33 dividend. This is an increase from ResMed’s previous quarterly dividend of $0.30. This represents a $1.32 annualized dividend and a yield of 2.05%. The ex-dividend date was Tuesday, August 16th. ResMed’s dividend payout ratio is currently 54.32%.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Citigroup Inc. increased its position in ResMed by 2.8% in the second quarter. Citigroup Inc. now owns 1,572 shares of the company’s stock valued at $100,000 after buying an additional 43 shares in the last quarter. Mizuho Asset Management Co. Ltd. increased its position in ResMed by 102.6% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,692 shares of the company’s stock valued at $107,000 after buying an additional 857 shares in the last quarter. Sei Investments Co. increased its position in ResMed by 35.4% in the second quarter. Sei Investments Co. now owns 1,722 shares of the company’s stock valued at $109,000 after buying an additional 450 shares in the last quarter. Meeder Asset Management Inc. bought a new stake in shares of ResMed during the third quarter worth about $147,000. Finally, Glenmede Trust Co. NA increased its stake in shares of ResMed by 7.3% in the second quarter. Glenmede Trust Co. NA now owns 2,625 shares of the company’s stock worth $165,000 after buying an additional 179 shares during the period. 60.95% of the stock is owned by hedge funds and other institutional investors.
ResMed Inc is engaged in the development, manufacturing, distribution and marketing of medical products for the diagnosis, treatment and management of respiratory disorders, with a focus on sleep-disordered breathing (SDB). The Company develops various products for SDB and other respiratory disorders, including airflow generators, diagnostic products, mask systems, headgear and other accessories.
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