ResMed Inc. (NYSE:RMD) Raises Dividend to $0.53 Per Share

ResMed Inc. (NYSE:RMD) declared a quarterly dividend on Friday, August 2nd, Wall Street Journal reports. Stockholders of record on Thursday, August 15th will be given a dividend of 0.53 per share by the medical equipment provider on Thursday, September 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.95%. The ex-dividend date is Thursday, August 15th. This is a positive change from ResMed’s previous quarterly dividend of $0.48.

ResMed has increased its dividend by an average of 5.7% annually over the last three years and has increased its dividend every year for the last 12 years. ResMed has a dividend payout ratio of 21.9% meaning its dividend is sufficiently covered by earnings. Equities analysts expect ResMed to earn $8.71 per share next year, which means the company should continue to be able to cover its $1.92 annual dividend with an expected future payout ratio of 22.0%.

ResMed Stock Performance

NYSE:RMD traded up $9.08 during mid-day trading on Friday, reaching $223.64. 2,632,383 shares of the stock were exchanged, compared to its average volume of 1,064,007. The stock has a market capitalization of $32.85 billion, a P/E ratio of 34.26, a P/E/G ratio of 1.84 and a beta of 0.66. ResMed has a 1 year low of $132.24 and a 1 year high of $225.68. The company has a 50 day simple moving average of $203.68 and a 200-day simple moving average of $195.94. The company has a quick ratio of 1.97, a current ratio of 3.04 and a debt-to-equity ratio of 0.22.

ResMed (NYSE:RMD) last announced its quarterly earnings data on Thursday, August 1st. The medical equipment provider reported $2.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.05. ResMed had a net margin of 20.91% and a return on equity of 24.43%. The company had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the previous year, the company posted $1.60 EPS. ResMed’s revenue was up 6.9% compared to the same quarter last year. Analysts anticipate that ResMed will post 7.7 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on RMD shares. Oppenheimer lowered shares of ResMed from an “outperform” rating to a “market perform” rating in a report on Tuesday, June 25th. Citigroup cut ResMed from a “buy” rating to a “neutral” rating in a report on Monday, June 24th. Royal Bank of Canada increased their price target on shares of ResMed from $200.00 to $204.00 and gave the stock a “sector perform” rating in a research report on Tuesday, July 23rd. Needham & Company LLC restated a “buy” rating and set a $236.00 price objective on shares of ResMed in a research note on Friday. Finally, KeyCorp raised their price target on shares of ResMed from $238.00 to $251.00 and gave the stock an “overweight” rating in a research report on Friday. Six equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $204.50.

Insider Activity

In other news, Director Witte Jan De sold 360 shares of the stock in a transaction on Wednesday, May 15th. The stock was sold at an average price of $218.29, for a total transaction of $78,584.40. Following the completion of the sale, the director now owns 7,519 shares in the company, valued at approximately $1,641,322.51. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other news, CFO Brett Sandercock sold 1,000 shares of the stock in a transaction that occurred on Monday, June 10th. The shares were sold at an average price of $209.81, for a total value of $209,810.00. Following the completion of the sale, the chief financial officer now directly owns 91,056 shares of the company’s stock, valued at $19,104,459.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Witte Jan De sold 360 shares of ResMed stock in a transaction that occurred on Wednesday, May 15th. The shares were sold at an average price of $218.29, for a total transaction of $78,584.40. Following the completion of the sale, the director now owns 7,519 shares of the company’s stock, valued at $1,641,322.51. The disclosure for this sale can be found here. In the last quarter, insiders sold 46,409 shares of company stock worth $9,602,796. Corporate insiders own 1.21% of the company’s stock.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It 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 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, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.