ResMed (NYSE:RMD) Stock Price Down 2.8% - Should You Sell?

ResMed Inc. (NYSE:RMD - Get Free Report)'s stock price traded down 2.8% during mid-day trading on Monday . The stock traded as low as $248.09 and last traded at $248.84. 727,312 shares changed 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.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Bank of America boosted their target price on shares of ResMed from $240.00 to $270.00 and gave the company a "buy" rating in a research note on Thursday, September 26th. Needham & Company LLC reissued a "hold" rating on shares of ResMed in a research note on Friday. KeyCorp boosted their target price on shares of ResMed from $251.00 to $266.00 and gave the company an "overweight" rating in a research note on Friday. Wolfe Research reissued an "underperform" rating and set a $180.00 target price on shares of ResMed in a research note on Wednesday, September 18th. Finally, Royal Bank of Canada boosted their price target on shares of ResMed from $224.00 to $232.00 and gave the company a "sector perform" rating in a report on Friday. One equities research analyst has rated the stock with a sell rating, five have given a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $225.70.

ResMed Stock Performance

The stock's 50-day simple moving average is $240.79 and its two-hundred day simple moving average is $218.16. The stock has a market cap of $36.23 billion, a price-to-earnings ratio of 33.53, a price-to-earnings-growth ratio of 2.05 and a beta of 0.69. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.91 and a current ratio of 2.92.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings data on Thursday, October 24th. The medical equipment provider reported $2.20 EPS for the quarter, beating analysts' consensus estimates of $2.03 by $0.17. The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.19 billion. ResMed had a net margin of 23.15% and a return on equity of 25.53%. The firm's revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.64 earnings per share. Analysts forecast that ResMed Inc. will post 9.16 earnings per share for the current year.

ResMed Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Thursday, November 7th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.86%. The ex-dividend date is Thursday, November 7th. ResMed's dividend payout ratio (DPR) is presently 28.08%.

Insider Buying and Selling

In related news, insider Kaushik Ghoshal sold 4,260 shares of the stock in a transaction dated 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 completion of the transaction, the insider now owns 21,788 shares of the company's stock, valued at $5,196,002.24. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other ResMed news, insider Justin Leong sold 48,000 shares of the company's stock in a transaction dated Monday, August 5th. The shares were sold at an average price of $217.07, for a total transaction of $10,419,360.00. Following the sale, the insider now directly owns 18,741 shares of the company's stock, valued at approximately $4,068,108.87. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kaushik Ghoshal sold 4,260 shares of the company's stock in a transaction dated Friday, October 11th. The stock was 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 $5,196,002.24. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 123,874 shares of company stock valued at $28,151,142 over the last quarter. Corporate insiders own 0.71% of the company's stock.

Institutional Trading of ResMed

Several large investors have recently added to or reduced their stakes in RMD. Bank of New York Mellon Corp grew its stake in shares of ResMed by 51.4% during the second quarter. Bank of New York Mellon Corp now owns 5,772,761 shares of the medical equipment provider's stock valued at $1,105,022,000 after purchasing an additional 1,959,642 shares during the last quarter. Los Angeles Capital Management LLC grew its stake in shares of ResMed by 48.3% during the second quarter. Los Angeles Capital Management LLC now owns 740,226 shares of the medical equipment provider's stock valued at $141,694,000 after purchasing an additional 241,195 shares during the last quarter. Greenvale Capital LLP grew its stake in shares of ResMed by 61.1% during the second quarter. Greenvale Capital LLP now owns 725,000 shares of the medical equipment provider's stock valued at $138,780,000 after purchasing an additional 275,000 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of ResMed by 19.3% during the second quarter. Dimensional Fund Advisors LP now owns 661,717 shares of the medical equipment provider's stock valued at $126,670,000 after purchasing an additional 107,279 shares during the last quarter. Finally, Tandem Investment Advisors Inc. grew its stake in shares of ResMed by 3.0% during the second quarter. Tandem Investment Advisors Inc. now owns 501,391 shares of the medical equipment provider's stock valued at $95,976,000 after purchasing an additional 14,590 shares during the last quarter. 54.98% of the stock is 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.

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