ResMed CEO exercises options and sells 4,991 shares
ResMed Chairman and CEO Michael J. Farrell exercised stock options and sold the resulting shares in a routine, pre-planned transaction.
Rhea-AI Filing Summary
ResMed Chairman and CEO Michael J. Farrell exercised stock options and sold the resulting shares in a routine, pre-planned transaction. On April 7, 2026, he exercised options for 4,991 ResMed shares at $146.34 per share, then sold the same 4,991 shares in an open-market sale at a weighted average price of $225.5032.
The sale was conducted under a Rule 10b5-1 trading plan adopted on October 31, 2024, indicating it was pre-scheduled rather than opportunistic. After the transactions, Farrell directly holds 466,223 ResMed shares and indirectly holds 2,090 shares through the Lisette and Michael Farrell Family Trust, so the net shares sold represent a small portion of his overall stake.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Exercise and Sale: 4,991 shares ($395K approx. pre-tax spread)
Exercise and Sale
4 txns
Insider
Farrell Michael J.
Role
Chairman and CEO
Sold
4,991 shs ($1.13M)
Approx. gross sale proceeds
$1.13M
Approx. exercise cost
$730K
Approx. pre-tax spread
$395K
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | ResMed Common Stock Options | 4,991 | $0.00 | $0.00 |
| Exercise | ResMed Common Stock | 4,991 | $146.34 | $730K |
| Sale | ResMed Common Stock | 4,991 | $225.5032 | $1.13M |
| holding | ResMed Common Stock | -- | -- | -- |
Holdings After Transaction:
ResMed Common Stock Options — 34,939 contracts (Direct);
ResMed Common Stock — 466,223 shares (Direct);
ResMed Common Stock — 2,090 shares (Indirect, Lisette and Michael Farrell Family Trust)
Footnotes (3)
- F1. The transaction was conducted under a Rule 10b5-1 plan adopted October 31, 2024.
- F2. This transaction was executed in multiple trades at prices ranging from $222.5643 - $227.96. The price reported above reflects the weighted average sale price.
- F3. Represents date options first become exercisable. Options vest 1/3 per year.
Key Figures
Options exercised: 4,991 shares
Option exercise price: $146.34 per share
Shares sold: 4,991 shares
+4 more
7 metrics
Options exercised
4,991 shares
ResMed Common Stock Options exercised on April 7, 2026
Option exercise price
$146.34 per share
Exercise price for 4,991 ResMed shares
Shares sold
4,991 shares
Open-market sale on April 7, 2026
Weighted average sale price
$225.5032 per share
Average sale price across multiple trades
Direct holdings after transaction
466,223 shares
ResMed common stock directly owned after April 7, 2026
Indirect holdings after transaction
2,090 shares
Held through Lisette and Michael Farrell Family Trust
Net buy/sell shares
-4,991 shares
Net effect of April 7, 2026 trades
Key Terms
Rule 10b5-1 plan, ResMed Common Stock Options, open-market sale, weighted average sale price, +1 more
5 terms
Rule 10b5-1 plan financial
"The transaction was conducted under a Rule 10b5-1 plan adopted October 31, 2024."
A Rule 10b5-1 plan is a prearranged, written schedule that lets corporate insiders buy or sell company stock at set times or amounts, even if they later learn material nonpublic information. Think of it like setting an automatic thermostat for trades: it creates a clear record that trades were planned in advance, reducing the risk of insider-trading accusations and helping investors trust that insider transactions are routine rather than based on secret information.
ResMed Common Stock Options financial
"security_title": "ResMed Common Stock Options""
open-market sale financial
"transaction_action": "open-market sale""
An open-market sale is when a shareholder sells existing shares directly on a public exchange to any willing buyer, rather than through a private deal. Think of it like putting goods on a busy market stall where price is set by supply and demand; for investors it matters because such sales increase available supply, can put short-term downward pressure on the stock price, and signal changes in liquidity or investor confidence.
weighted average sale price financial
"The price reported above reflects the weighted average sale price."
exercise or conversion of derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
FAQ
What did ResMed (RMD) CEO Michael Farrell do in this Form 4 filing?
Michael J. Farrell exercised options to acquire 4,991 ResMed shares at $146.34 and immediately sold the same 4,991 shares at a weighted average price of $225.5032. This is a classic exercise-and-sell transaction, converting option value into cash while maintaining a large remaining stake.
Were Michael Farrell’s ResMed stock transactions pre-planned under Rule 10b5-1?
Yes. The Form 4 specifies that the transaction was conducted under a Rule 10b5-1 trading plan adopted on October 31, 2024. Such plans pre-schedule trades, indicating the timing of this sale was arranged in advance rather than being a discretionary market-timing decision.
What options did Michael Farrell exercise in this ResMed Form 4?
He exercised ResMed Common Stock Options covering 4,991 underlying shares at an exercise price of $146.34 per share. The options first became exercisable on November 11, 2020 and vest one-third per year, and after this exercise no remaining position from this grant is shown in the filing.
AI-generated analysis. How Rhea-AI works. Not financial advice.
