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

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

ResMed has raised its dividend payment by an average of 5.7% per year 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. Research 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 Trading Up 4.2 %

Shares of RMD traded up $9.08 during trading hours on Friday, reaching $223.64. The stock had a trading volume of 2,632,383 shares, compared to its average volume of 1,064,007. The company has a market cap 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 52 week low of $132.24 and a 52 week high of $225.68. The company has a quick ratio of 1.97, a current ratio of 3.04 and a debt-to-equity ratio of 0.22. The firm has a 50-day moving average of $203.68 and a 200 day moving average of $195.94.

ResMed (NYSE:RMD) last released its quarterly earnings results on Thursday, August 1st. The medical equipment provider reported $2.08 EPS for the quarter, topping analysts’ consensus estimates of $2.03 by $0.05. ResMed had a return on equity of 24.43% and a net margin of 20.91%. The company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter last year, the firm posted $1.60 earnings per share. ResMed’s revenue was up 6.9% compared to the same quarter last year. On average, sell-side analysts expect that ResMed will post 7.7 earnings per share for the current fiscal year.

Insider Activity at ResMed

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

Analyst Ratings Changes

Several equities research analysts have recently issued reports on RMD shares. Royal Bank of Canada increased their price objective 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. KeyCorp boosted their price target on ResMed from $238.00 to $251.00 and gave the company an “overweight” rating in a report on Friday. Oppenheimer downgraded ResMed from an “outperform” rating to a “market perform” rating in a report on Tuesday, June 25th. Needham & Company LLC reissued a “buy” rating and issued a $236.00 target price on shares of ResMed in a research report on Friday. Finally, Citigroup downgraded ResMed from a “buy” rating to a “neutral” rating in a research report on Monday, June 24th. Six investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $204.50.

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.