ResMed (NYSE:RMD) Shares Gap Up - Here's What Happened

ResMed Inc. (NYSE:RMD - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $230.58, but opened at $239.43. ResMed shares last traded at $232.29, with a volume of 108,724 shares.

Analysts Set New Price Targets

RMD has been the subject of a number of research analyst reports. Needham & Company LLC reaffirmed a "hold" rating on shares of ResMed in a research report on Friday, January 31st. Royal Bank of Canada increased their price objective on shares of ResMed from $224.00 to $232.00 and gave the stock a "sector perform" rating in a research report on Friday, October 25th. Robert W. Baird increased their price objective on shares of ResMed from $280.00 to $283.00 and gave the stock an "outperform" rating in a research report on Friday, October 25th. Stifel Nicolaus initiated coverage on shares of ResMed in a research report on Friday, December 13th. They set a "hold" rating and a $250.00 price objective for the company. Finally, The Goldman Sachs Group initiated coverage on shares of ResMed in a research report on Thursday, January 16th. They issued a "buy" rating for the company. One analyst has rated the stock with a sell rating, six have given a hold rating, seven have given a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $244.73.

ResMed Trading Down 0.5 %

The firm has a market capitalization of $34.02 billion, a PE ratio of 27.34, a PEG ratio of 1.55 and a beta of 0.70. The company's 50-day moving average price is $237.57 and its 200-day moving average price is $238.96. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.29 and a current ratio of 3.33.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Thursday, January 30th. The medical equipment provider reported $2.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.29 by $0.14. ResMed had a net margin of 25.34% and a return on equity of 26.17%. On average, sell-side analysts expect that ResMed Inc. will post 9.44 earnings per share for the current year.

ResMed Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 20th. Stockholders of record on Thursday, February 13th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, February 13th. This represents a $2.12 annualized dividend and a dividend yield of 0.92%. ResMed's dividend payout ratio (DPR) is currently 25.03%.

Insider Buying and Selling

In related news, Director Peter C. Farrell sold 2,000 shares of ResMed stock in a transaction on Wednesday, February 5th. The shares were sold at an average price of $242.11, for a total transaction of $484,220.00. Following the sale, the director now directly owns 77,218 shares in the company, valued at $18,695,249.98. This trade represents a 2.52 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael J. Farrell sold 8,009 shares of ResMed stock in a transaction on Friday, February 7th. The stock was sold at an average price of $236.77, for a total transaction of $1,896,290.93. Following the sale, the chief executive officer now owns 455,472 shares in the company, valued at $107,842,105.44. This represents a 1.73 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 12,147 shares of company stock worth $2,905,745 in the last ninety days. 0.71% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. True Wealth Design LLC increased its stake in ResMed by 2,200.0% in the third quarter. True Wealth Design LLC now owns 115 shares of the medical equipment provider's stock valued at $28,000 after purchasing an additional 110 shares during the period. Colonial Trust Co SC increased its stake in ResMed by 6,250.0% in the fourth quarter. Colonial Trust Co SC now owns 127 shares of the medical equipment provider's stock valued at $29,000 after purchasing an additional 125 shares during the period. Ashton Thomas Securities LLC purchased a new stake in shares of ResMed in the third quarter valued at about $34,000. Optiver Holding B.V. purchased a new stake in shares of ResMed in the fourth quarter valued at about $33,000. Finally, Itau Unibanco Holding S.A. boosted its holdings in shares of ResMed by 1,000.0% in the fourth quarter. Itau Unibanco Holding S.A. now owns 165 shares of the medical equipment provider's stock valued at $38,000 after acquiring an additional 150 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

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.