ResMed (NYSE:RMD) Shares Down 6.1% – Should You Sell?

ResMed Inc. (NYSE:RMD) shares dropped 6.1% during trading on Friday . The company traded as low as $235.00 and last traded at $241.87. Approximately 334,218 shares were traded during mid-day trading, a decline of 60% from the average daily volume of 845,787 shares. The stock had previously closed at $257.65.

Wall Street Analysts Forecast Growth

RMD has been the subject of several research reports. Stifel Nicolaus assumed coverage on ResMed in a research note on Friday, December 13th. They issued a “hold” rating and a $250.00 target price for the company. Robert W. Baird lifted their price objective on ResMed from $280.00 to $283.00 and gave the stock an “outperform” rating in a research report on Friday, October 25th. Piper Sandler upped their target price on shares of ResMed from $252.00 to $260.00 and gave the company a “neutral” rating in a research report on Friday. Needham & Company LLC reiterated a “hold” rating on shares of ResMed in a research report on Friday. Finally, StockNews.com raised shares of ResMed from a “hold” rating to a “buy” rating in a research note on Tuesday, October 15th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $240.60.

ResMed Trading Down 5.2 %

The company has a quick ratio of 1.91, a current ratio of 2.92 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $35.85 billion, a P/E ratio of 32.37, a price-to-earnings-growth ratio of 1.83 and a beta of 0.70. The company has a fifty day simple moving average of $240.32 and a two-hundred day simple moving average of $235.99.

ResMed (NYSE:RMD) last issued its quarterly earnings data on Thursday, January 30th. The medical equipment provider reported $2.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.29 by $0.14. ResMed had a return on equity of 25.53% and a net margin of 23.15%. On average, sell-side analysts expect that ResMed Inc. will post 9.35 earnings per share for the current year.

Insider Activity at ResMed

In other ResMed news, insider Justin Leong sold 6,160 shares of the business’s stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $243.09, for a total value of $1,497,434.40. Following the sale, the insider now owns 21,718 shares in the company, valued at approximately $5,279,428.62. The trade was a 22.10 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Peter C. Farrell sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $245.65, for a total transaction of $491,300.00. Following the transaction, the director now directly owns 81,218 shares of the company’s stock, valued at $19,951,201.70. This represents a 2.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 11,030 shares of company stock valued at $2,702,687. 0.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ResMed

Several hedge funds and other institutional investors have recently made changes to their positions in RMD. Public Sector Pension Investment Board grew its position in shares of ResMed by 74.1% in the 2nd quarter. Public Sector Pension Investment Board now owns 5,632 shares of the medical equipment provider’s stock valued at $1,078,000 after acquiring an additional 2,398 shares during the period. Creative Planning grew its holdings in ResMed by 4.7% during the second quarter. Creative Planning now owns 24,282 shares of the medical equipment provider’s stock worth $4,648,000 after purchasing an additional 1,082 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in ResMed by 30.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,133 shares of the medical equipment provider’s stock worth $982,000 after purchasing an additional 1,208 shares during the period. Quarry LP raised its stake in ResMed by 271.9% in the second quarter. Quarry LP now owns 331 shares of the medical equipment provider’s stock valued at $63,000 after buying an additional 242 shares during the period. Finally, Cetera Investment Advisers lifted its position in shares of ResMed by 26.8% in the second quarter. Cetera Investment Advisers now owns 9,721 shares of the medical equipment provider’s stock valued at $1,861,000 after buying an additional 2,053 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.