Stock Traders Buy Large Volume of ResMed Call Options (NYSE:RMD)

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ResMed Inc. (NYSE:RMD) was the recipient of unusually large options trading on Tuesday. Stock investors acquired 1,855 call options on the stock. This represents an increase of 2,628% compared to the average volume of 68 call options.

RMD has been the topic of several research reports. Deutsche Bank upgraded ResMed from a “hold” rating to a “buy” rating in a report on Wednesday, March 20th. UBS Group upgraded ResMed from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $109.00 to $119.00 in a report on Monday, May 6th. ValuEngine downgraded ResMed from a “buy” rating to a “hold” rating in a report on Thursday, April 4th. Zacks Investment Research upgraded ResMed from a “sell” rating to a “buy” rating and set a $116.00 price objective on the stock in a report on Monday, April 1st. Finally, JPMorgan Chase & Co. upgraded ResMed from an “underweight” rating to a “neutral” rating and set a $95.00 price objective on the stock in a report on Thursday, April 18th. Two equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. ResMed has an average rating of “Buy” and an average target price of $112.50.

RMD opened at $119.50 on Thursday. The business’s fifty day moving average price is $115.64. The stock has a market cap of $17.37 billion, a P/E ratio of 33.85, a P/E/G ratio of 3.15 and a beta of 0.44. ResMed has a 52 week low of $90.64 and a 52 week high of $123.33. The company has a debt-to-equity ratio of 0.65, a current ratio of 2.38 and a quick ratio of 1.69.

ResMed (NYSE:RMD) last announced its quarterly earnings results on Thursday, May 2nd. The medical equipment provider reported $0.89 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.84 by $0.05. ResMed had a return on equity of 26.46% and a net margin of 17.65%. The business had revenue of $662.23 million for the quarter, compared to the consensus estimate of $657.82 million. During the same period last year, the business posted $0.92 EPS. The business’s revenue was up 11.9% compared to the same quarter last year. Equities analysts anticipate that ResMed will post 3.63 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Thursday, June 13th. Stockholders of record on Thursday, May 9th were issued a $0.37 dividend. The ex-dividend date was Wednesday, May 8th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.24%. ResMed’s dividend payout ratio is presently 41.93%.

In other news, CFO Brett Sandercock sold 3,000 shares of the stock in a transaction that occurred on Monday, April 1st. The stock was sold at an average price of $104.96, for a total value of $314,880.00. Following the sale, the chief financial officer now directly owns 85,390 shares in the company, valued at $8,962,534.40. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider James Hollingshead sold 1,600 shares of the stock in a transaction that occurred on Monday, April 1st. The stock was sold at an average price of $104.96, for a total value of $167,936.00. Following the completion of the sale, the insider now owns 81,257 shares in the company, valued at $8,528,734.72. The disclosure for this sale can be found here. Over the last quarter, insiders sold 102,325 shares of company stock worth $11,387,378. Company insiders own 1.24% of the company’s stock.

Several large investors have recently made changes to their positions in the company. Farmers & Merchants Investments Inc. boosted its position in shares of ResMed by 49.0% in the 1st quarter. Farmers & Merchants Investments Inc. now owns 295 shares of the medical equipment provider’s stock worth $31,000 after purchasing an additional 97 shares in the last quarter. Executive Wealth Management LLC acquired a new stake in ResMed during the 4th quarter worth about $35,000. Pinnacle Bank acquired a new stake in ResMed during the 4th quarter worth about $42,000. RPg Family Wealth Advisory LLC acquired a new stake in ResMed during the 1st quarter worth about $50,000. Finally, Financial Gravity Wealth Inc. acquired a new stake in ResMed during the 1st quarter worth about $51,000. Institutional investors and hedge funds own 67.25% of the company’s stock.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.

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