RMD Form 4: CEO Farrell Exercises 8,009 Options and Sells Shares
Rhea-AI Filing Summary
Michael J. Farrell, Chief Executive Officer of ResMed (RMD), reported option exercises and stock sales executed under a Rule 10b5-1 plan adopted 10/31/2024. On 10/07/2025 he exercised 8,009 options at an exercise price of $101.64 and immediately sold 8,009 shares in multiple trades at weighted average proceeds of $282.8483 per share (runs reported between $280.95 and $283.90). Following these transactions, his beneficial ownership decreased from 475,801 shares to 467,792, with 2,090 shares held indirectly by the Lisette and Michael Farrell Family Trust. The options exercised vest on a schedule that began 11/11/2019 and expire 11/14/2025.
Positive
- Transactions executed under a Rule 10b5-1 plan, showing preplanned trading and compliance
- Exercise price paid of $101.64 on 8,009 options (captures long‑term compensation realization)
Negative
- Direct beneficial ownership decreased by 8,009 shares from 475,801 to 467,792
- Options expire soon on 11/14/2025, which may prompt further exercises or sales in near term
Insights
Insider used an established Rule 10b5-1 plan to exercise options and sell shares.
The transactions show an officer exercising 8,009 options at $101.64 and selling the same number of shares at a weighted average of $282.85, consistent with a pre‑arranged trading plan adopted 10/31/2024. This pattern reduces direct beneficial ownership from 475,801 to 467,792.
The primary dependence is the 10b5-1 plan timing and option vesting/expiration (options expire 11/14/2025). Watch for any further scheduled exercises or plan disclosures near option expiration over the next few months.
Option exercise and immediate sale are execution of equity compensation, not an intra-day trading signal.
The exercised options had an exercise price of $101.64 and zero reported cash price for derivative conversion, implying standard option settlement and immediate disposition of the resulting shares. Vesting began 11/11/2019 with a three-year tranche schedule (1/3 per year).
Given the option expiration on 11/14/2025, monitor equity plan activity and future Form 4s for additional exercises as expiration approaches.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | ResMed Common Stock Options | 8,009 | $0.00 | -- |
| Exercise | ResMed Common Stock | 8,009 | $101.64 | $814K |
| Sale | ResMed Common Stock | 8,009 | $282.8483 | $2.27M |
| holding | ResMed Common Stock | -- | -- | -- |
Footnotes (1)
- The transaction was conducted under a Rule 10b5-1 plan adopted October 31, 2024. This transaction was executed in multiple trades at prices ranging from $280.95 - $283.90. The price reported above reflects the weighted average sale price. Represents date options first become exercisable. Options vest 1/3 per year.
