ResMed Inc. (NYSE:RMD) reported that its Chief Financial Officer, Brett Sandercock, sold shares in the company on September 9, 2024. According to the filing, Sandercock sold 1,000 shares of ResMed common stock at a price of $246.42 per share, totaling $246,420.
The transaction was carried out under a prearranged trading plan known as a Rule 10b5-1 plan, which was adopted on February 6, 2024. These plans are commonly used by company insiders to sell shares over a predetermined period of time to avoid accusations of trading on non-public, material information.
Following the sale, Sandercock still owns a substantial amount of ResMed stock, with 96,812 shares remaining in his possession. This latest sale by a key executive is a transaction of interest to investors and market watchers who track insider trading activity for insights into company performance and executive sentiment.
ResMed Inc., headquartered in San Diego, California, specializes in the development, manufacturing, and marketing of medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders.
In other recent news, ResMed Inc. has reported robust growth in the fourth quarter of fiscal year 2024. The company's group revenue rose by 9%, reaching $1.22 billion, primarily driven by strong mask sales in the United States. The gross margin for the quarter also increased by 338 basis points, reaching 59.1%.
ResMed was recently downgraded from Buy to Hold by Needham, citing anticipated challenges in the competitive landscape and a forecasted deceleration of margin improvement in the fiscal year 2025. Despite this, William Blair has maintained an Outperform rating on ResMed, anticipating a significant increase in sleep apnea and CPAP patients.
In addition, CLSA increased the price target for ResMed to AUD35.00 following the company's strong fourth-quarter performance. RBC Capital also updated its outlook on ResMed, raising the price target to AUD206.00, despite concerns about weaker device growth and potential long-term competition in the market.
ResMed also reported a 10% increase in its quarterly dividend to shareholders, reduced its debt by $300 million, and repurchased 232,000 shares for $50 million. Looking forward, the company plans to invest in research and development, pursue acquisitions, and continue its share buyback program. These are recent developments that provide insight into the company's financial health and future plans.
InvestingPro Insights
As investors digest the news of ResMed Inc.'s (NYSE:RMD) CFO Brett Sandercock's recent stock sale, it's crucial to consider the company's financial health and market performance. ResMed has demonstrated a strong track record, marked by a consistent increase in dividends, which has risen for 13 consecutive years, according to an InvestingPro Tip. This suggests a robust financial position and commitment to returning value to shareholders. Additionally, analysts have shown confidence in the company's near-term earnings potential, with two analysts revising their earnings upwards for the upcoming period.
Looking at real-time data from InvestingPro, ResMed's market capitalization stands at a robust $37.15 billion. The company's P/E ratio is currently at 36.42, indicating a premium valuation that investors are willing to pay for its earnings. Furthermore, ResMed's revenue growth over the last twelve months as of Q4 2024 is a healthy 10.95%, reflecting its capacity to expand its top-line figures in a competitive market.
These financial metrics, together with the company's solid dividend growth of 20.45% in the last twelve months as of Q4 2024, underscore ResMed's financial stability and potential for future growth. For those looking to delve deeper into ResMed's performance and insider trading implications, additional InvestingPro Tips are available, with a total of 19 listed on the platform.
With ResMed trading near its 52-week high, at 99.09% of the peak, and showing a significant one-year price total return of 68.63%, investors may find these insights particularly relevant as they assess the impact of insider transactions on their investment decisions.
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