Peter C Farrell Exercises Options, Realizes $1.65M

A substantial insider activity was disclosed on November 18, as Farrell, Board Member at ResMed (NYSE:RMD), reported the exercise of a large sell of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Farrell, Board Member at ResMed, a company in the Health Care sector, just exercised stock options worth 11,442 shares of RMD stock with an exercise price of $101.64.

The latest update on Wednesday morning shows ResMed shares down by 0.02%, trading at $246.16. At this price, Farrell's 11,442 shares are worth $1,653,597.

Get to Know ResMed Better

ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with ageing populations and increasing prevalence of obesity is resulting in a structurally growing market. The company earns roughly two thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor and payer in the out-of-hospital setting.

ResMed's Economic Impact: An Analysis

Revenue Growth: ResMed's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 9.07%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Navigating Financial Profits:

• Gross Margin: The company sets a benchmark with a high gross margin of 61.46%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): ResMed's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.38.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.14.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: ResMed's P/E ratio of 25.2 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 6.89 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 17.68, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of ResMed's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.