ResMed Inc. (NYSE:RMD) Plans Dividend Increase – $0.53 Per Share

ResMed Inc. (NYSE:RMD) declared a quarterly dividend on Thursday, August 1st, Wall Street Journal reports. Investors 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 yield of 0.95%. The ex-dividend date of this dividend is Thursday, August 15th. This is an increase from ResMed’s previous quarterly dividend of $0.48.

ResMed has raised its dividend by an average of 5.7% per year over the last three years and has increased its dividend annually for the last 12 consecutive years. ResMed has a dividend payout ratio of 21.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect ResMed to earn $9.56 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 20.1%.

ResMed Price Performance

RMD stock opened at $223.64 on Friday. The company’s fifty day simple moving average is $203.89 and its 200 day simple moving average is $196.28. ResMed has a 12-month low of $132.24 and a 12-month high of $225.68. The firm has a market cap of $32.85 billion, a price-to-earnings ratio of 34.35, a PEG ratio of 1.85 and a beta of 0.66. 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 released its quarterly earnings data on Thursday, August 1st. The medical equipment provider reported $2.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.03 by $0.05. The company had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.22 billion. ResMed had a net margin of 21.79% and a return on equity of 25.58%. The business’s revenue was up 6.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.60 EPS. On average, analysts expect that ResMed will post 8.71 earnings per share for the current year.

Insiders Place Their Bets

In other ResMed news, 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 transaction, the director now owns 7,519 shares of the company’s stock, valued at approximately $1,641,322.51. The transaction was disclosed in a legal filing with the SEC, which is available through this link. In other ResMed news, CEO Michael J. Farrell sold 14,683 shares of ResMed stock in a transaction that occurred on Tuesday, May 7th. The shares were sold at an average price of $216.50, for a total transaction of $3,178,869.50. Following the transaction, the chief executive officer now owns 440,752 shares of the company’s stock, valued at approximately $95,422,808. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Witte Jan De sold 360 shares of ResMed stock in a transaction that occurred 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 transaction, the director now directly owns 7,519 shares in the company, valued at approximately $1,641,322.51. The disclosure for this sale can be found here. Insiders have sold a total of 46,409 shares of company stock valued at $9,602,796 in the last 90 days. 1.21% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research firms have recently issued reports on RMD. Royal Bank of Canada increased their price objective on shares of ResMed from $204.00 to $206.00 and gave the stock a “sector perform” rating in a research report on Friday. Citigroup cut shares of ResMed from a “buy” rating to a “neutral” rating in a research report on Monday, June 24th. Needham & Company LLC reissued a “buy” rating and set a $236.00 price objective on shares of ResMed in a research report on Friday. Oppenheimer cut shares of ResMed from an “outperform” rating to a “market perform” rating in a research report on Tuesday, June 25th. Finally, KeyCorp raised their price target on shares of ResMed from $238.00 to $251.00 and gave the company an “overweight” rating in a research report on Friday. Six analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $204.70.

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.