ResMed (NYSE:RMD) Stock Price Crosses Below 200 Day Moving Average – Should You Sell?

ResMed Inc. (NYSE:RMD)’s stock price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $229.69 and traded as low as $228.27. ResMed shares last traded at $228.69, with a volume of 522,842 shares trading hands.

Analysts Set New Price Targets

Several equities analysts recently weighed in on RMD shares. Baird R W raised ResMed to a “strong-buy” rating in a research report on Tuesday, September 24th. Needham & Company LLC reissued a “hold” rating on shares of ResMed in a research report on Friday, October 25th. Wolfe Research restated an “underperform” rating and issued a $180.00 price objective on shares of ResMed in a research note on Wednesday, September 18th. Stifel Nicolaus began coverage on shares of ResMed in a report on Friday, December 13th. They issued a “hold” rating and a $250.00 price target for the company. Finally, Bank of America raised their price target on shares of ResMed from $240.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, September 26th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, ResMed has an average rating of “Moderate Buy” and an average target price of $227.91.

ResMed Stock Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.91 and a current ratio of 2.92. The firm has a 50 day moving average price of $241.42 and a two-hundred day moving average price of $229.69. The company has a market capitalization of $33.57 billion, a P/E ratio of 30.29, a price-to-earnings-growth ratio of 1.73 and a beta of 0.68.

ResMed (NYSE:RMD) last announced 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. ResMed had a return on equity of 25.53% and a net margin of 23.15%. The firm had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same period in the prior year, the business posted $1.64 earnings per share. The business’s revenue was up 11.1% compared to the same quarter last year. On average, research analysts expect that ResMed Inc. will post 9.34 earnings per share for the current fiscal year.

ResMed Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Thursday, November 7th were issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.93%. The ex-dividend date of this dividend was Thursday, November 7th. ResMed’s dividend payout ratio is currently 28.08%.

Insiders Place Their Bets

In other news, Director Witte Jan De sold 796 shares of the business’s stock in a transaction that occurred on Tuesday, November 12th. The stock was sold at an average price of $248.81, for a total value of $198,052.76. Following the transaction, the director now directly owns 6,723 shares of the company’s stock, valued at $1,672,749.63. The trade was a 10.59 % 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 14,683 shares of the firm’s stock in a transaction on Monday, October 7th. The shares were sold at an average price of $231.91, for a total value of $3,405,134.53. Following the sale, the chief executive officer now directly owns 464,169 shares of the company’s stock, valued at $107,645,432.79. This represents a 3.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 45,725 shares of company stock valued at $10,779,048. 0.71% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ResMed

A number of large investors have recently modified their holdings of RMD. Principal Financial Group Inc. lifted its stake in shares of ResMed by 2.9% during the third quarter. Principal Financial Group Inc. now owns 186,776 shares of the medical equipment provider’s stock valued at $45,596,000 after acquiring an additional 5,284 shares during the period. American Trust acquired a new position in ResMed during the 3rd quarter valued at about $690,000. Franklin Resources Inc. boosted its stake in shares of ResMed by 56.5% in the 3rd quarter. Franklin Resources Inc. now owns 174,113 shares of the medical equipment provider’s stock valued at $41,909,000 after purchasing an additional 62,882 shares during the last quarter. Tidal Investments LLC boosted its stake in shares of ResMed by 738.4% in the 3rd quarter. Tidal Investments LLC now owns 104,938 shares of the medical equipment provider’s stock valued at $25,617,000 after purchasing an additional 92,422 shares during the last quarter. Finally, Wilmington Savings Fund Society FSB acquired a new stake in shares of ResMed during the 3rd quarter worth approximately $193,000. 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.