Traders Buy Large Volume of ResMed Call Options (RMD)

ResMed Inc. (NYSE:RMD) was the recipient of some unusual options trading on Wednesday. Stock traders bought 1,414 call options on the stock. This represents an increase of approximately 2,218% compared to the average volume of 61 call options.

In other ResMed news, insider David Pendarvis sold 2,810 shares of the business’s stock in a transaction that occurred on Monday, February 5th. The stock was sold at an average price of $96.03, for a total transaction of $269,844.30. Following the transaction, the insider now owns 97,263 shares of the company’s stock, valued at approximately $9,340,165.89. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider James Hollingshead sold 7,019 shares of the business’s stock in a transaction that occurred on Monday, November 20th. The stock was sold at an average price of $84.16, for a total value of $590,719.04. Following the transaction, the insider now directly owns 66,409 shares in the company, valued at approximately $5,588,981.44. The disclosure for this sale can be found here. Insiders sold a total of 49,802 shares of company stock worth $4,824,727 in the last 90 days. Company insiders own 1.77% of the company’s stock.

Several hedge funds have recently made changes to their positions in RMD. Vanguard Group Inc. increased its holdings in ResMed by 3.3% in the 2nd quarter. Vanguard Group Inc. now owns 11,914,671 shares of the medical equipment provider’s stock worth $927,797,000 after purchasing an additional 378,964 shares in the last quarter. FMR LLC increased its holdings in ResMed by 38.2% in the 2nd quarter. FMR LLC now owns 5,542,582 shares of the medical equipment provider’s stock worth $431,601,000 after purchasing an additional 1,531,772 shares in the last quarter. Baillie Gifford & Co. increased its holdings in ResMed by 0.9% in the 3rd quarter. Baillie Gifford & Co. now owns 4,913,626 shares of the medical equipment provider’s stock worth $378,154,000 after purchasing an additional 44,340 shares in the last quarter. Northern Trust Corp increased its holdings in ResMed by 8.7% in the 2nd quarter. Northern Trust Corp now owns 1,473,925 shares of the medical equipment provider’s stock worth $114,774,000 after purchasing an additional 118,428 shares in the last quarter. Finally, Congress Asset Management Co. MA increased its stake in shares of ResMed by 2.2% in the fourth quarter. Congress Asset Management Co. MA now owns 1,078,645 shares of the medical equipment provider’s stock valued at $91,350,000 after buying an additional 23,714 shares during the period. Institutional investors and hedge funds own 61.47% of the company’s stock.

Shares of ResMed (RMD) opened at $91.73 on Tuesday. The firm has a market capitalization of $13,020.00, a price-to-earnings ratio of 46.10 and a beta of 0.92. ResMed has a 1 year low of $67.04 and a 1 year high of $104.78.

ResMed (NYSE:RMD) last released its earnings results on Monday, January 22nd. The medical equipment provider reported $1.00 earnings per share for the quarter, beating analysts’ consensus estimates of $0.78 by $0.22. ResMed had a return on equity of 22.75% and a net margin of 12.98%. The firm had revenue of $601.27 million during the quarter, compared to the consensus estimate of $583.77 million. During the same period in the prior year, the company posted $0.73 EPS. The company’s revenue was up 13.4% compared to the same quarter last year. equities analysts expect that ResMed will post 3.34 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 15th. Investors of record on Thursday, February 8th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Wednesday, February 7th. This represents a $1.40 annualized dividend and a dividend yield of 1.53%. ResMed’s dividend payout ratio is currently 70.35%.

RMD has been the topic of a number of recent analyst reports. Zacks Investment Research lowered ResMed from a “buy” rating to a “sell” rating in a report on Tuesday, October 24th. Needham & Company LLC reaffirmed a “sell” rating on shares of ResMed in a report on Friday, October 27th. Northland Securities reaffirmed a “sell” rating and issued a $55.00 price objective on shares of ResMed in a report on Friday, October 27th. Barclays upped their price objective on ResMed from $68.00 to $70.00 and gave the company an “underweight” rating in a report on Friday, October 27th. Finally, BMO Capital Markets upped their price objective on ResMed from $70.00 to $74.00 and gave the company a “market perform” rating in a report on Friday, October 27th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and four have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $76.00.

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ResMed Company Profile

ResMed Inc is a holding company. The Company is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease and other diseases.

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