Transaction details and pricing
ResMed (NASDAQ:RMD) Chairman and Chief Executive Officer Michael J. Farrell reported the sale of 4,991 shares of ResMed common stock on February 9, 2026, in a Form 4 filing with the Securities and Exchange Commission. The shares moved at a weighted average price of $273.7801, with trade prices ranging from $270.25 to $276.35. The sale generated approximately $1.36 million in proceeds.
On the same date, the filing shows Farrell exercised stock options to acquire an identical quantity of 4,991 shares at an exercise price of $146.34 per share, for a total exercise cost of $730,382. That exercise price represents a marked discount relative to the company’s then-trading metrics, noting ResMed’s reported price-to-earnings ratio of 26.62.
Context within the stock’s recent performance
At the time of the transactions the company’s quoted price was $271.09. The filing and market data referenced indicate the equity had registered strong upward momentum, with a 9.76% gain over the prior week. InvestingPro analytics cited in the filing also flagged the stock’s relative strength index (RSI) as consistent with overbought readings.
Plan governance and ownership stakes
The sales and option exercise were executed pursuant to a pre-established Rule 10b5-1 trading plan that Farrell adopted on October 31, 2024. After the sale, the filing records Farrell’s direct ownership at 466,223 shares. Additionally, he indirectly holds 2,090 shares through the Lisette and Michael Farrell Family Trust. The filing further indicates Farrell still holds 44,921 ResMed common stock options.
ResMed’s market capitalization is recorded at $39.48 billion in the filing, and the company pays a dividend yield of 0.87%.
Analyst reaction and recent company results
InvestingPro analysis cited in connection with the filing assigns ResMed an overall financial health rating of "GREAT," and notes that analyst price targets imply additional upside. The filing and related reporting also recap ResMed’s second-quarter fiscal 2026 financials: earnings per share of $2.81, above analysts’ consensus forecast of $2.73, and revenue of $1.4 billion, in line with expectations.
Following the quarter, RBC Capital raised its price target on ResMed to $314 from $311, and KeyBanc Capital Markets increased its target to $302 from $299 while maintaining an Overweight rating. Needham reiterated a Hold rating and highlighted that organic revenue growth improved to 8% in the second quarter from 7% in the first quarter. The filing notes these analyst actions in the context of the company’s reported double-digit revenue and earnings growth during the period.
Takeaway
The Form 4 filing documents a contemporaneous sale and option exercise by ResMed’s CEO under a pre-arranged trading plan, and shows sustained executive ownership and remaining option exposure. The company’s recent quarterly results and subsequent analyst target adjustments are also recorded in the filings and related reporting.