ResMed (NYSE:RMD) Shares Gap Down - Should You Sell?

ResMed Inc. (NYSE:RMD - Get Free Report)'s share price gapped down prior to trading 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 recently weighed in on RMD shares. Royal Bank of Canada lifted their target price on ResMed from $224.00 to $232.00 and gave the stock a "sector perform" rating in a research report 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. Needham & Company LLC restated a "hold" rating on shares of ResMed in a research note on Friday, October 25th. Stifel Nicolaus began coverage on shares of ResMed in a research note on Friday, December 13th. They set a "hold" rating and a $250.00 price target for the company. Finally, Baird R W upgraded ResMed to a "strong-buy" rating in a report on Tuesday, September 24th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $227.91.

ResMed Stock Down 2.6 %

The business has a 50 day moving average of $242.72 and a two-hundred day moving average of $228.69. The stock has a market capitalization of $33.93 billion, a PE ratio of 30.62, a PEG ratio of 1.73 and a beta of 0.68. 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 released its quarterly earnings results on Thursday, October 24th. The medical equipment provider reported $2.20 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.17. The business had revenue of $1.22 billion for the quarter, compared to analysts' expectations of $1.19 billion. ResMed had a net margin of 23.15% and a return on equity of 25.53%. The company's revenue was up 11.1% compared to the same quarter last year. During the same period last year, the business earned $1.64 EPS. Analysts predict that ResMed Inc. will post 9.34 EPS for the current year.

ResMed Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Stockholders of record on Thursday, November 7th were given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.92%. The ex-dividend date was Thursday, November 7th. ResMed's payout ratio is presently 28.08%.

Insider Activity

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of ResMed stock in a transaction dated Wednesday, October 2nd. The stock was sold at an average price of $237.20, for a total transaction of $474,400.00. Following the completion of the sale, the director now 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 position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Witte Jan De sold 796 shares of the stock in a transaction dated Tuesday, November 12th. The shares were sold at an average price of $248.81, for a total value of $198,052.76. Following the completion of the transaction, the director now directly owns 6,723 shares in the company, valued at $1,672,749.63. This represents a 10.59 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 47,725 shares of company stock worth $11,253,448. Insiders own 0.71% of the company's stock.

Institutional Investors Weigh In On ResMed

A number of institutional investors and hedge funds have recently modified their holdings of RMD. True Wealth Design LLC raised its stake 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 valued at $28,000 after buying an additional 110 shares during the last quarter. Ashton Thomas Securities LLC acquired a new stake in shares of ResMed in the third quarter valued at about $34,000. Financial Connections Group Inc. acquired a new position in shares of ResMed during the 2nd quarter worth about $37,000. Rothschild Investment LLC purchased a new position in ResMed in the 2nd quarter valued at about $44,000. Finally, Capital Performance Advisors LLP acquired a new stake in ResMed in the 3rd quarter worth about $60,000. Institutional investors and hedge funds own 54.98% of the company's stock.

About ResMed

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.