Farrell Michael J. 4

What Happened
Michael J. Farrell, Chairman and CEO of ResMed (RMD), exercised 4,991 stock options on April 7, 2026 at an exercise price of $146.34 per share (total cost $730,383) and immediately sold the 4,991 shares in the open market at a weighted average price of $225.50 per share for total proceeds of $1,125,486. The filing also shows the related derivative (the options) was disposed (reported at $0), reflecting the conversion of those options into shares and subsequent sale. The transactions were executed under a Rule 10b5-1 trading plan.

Key Details

• Transaction date: 2026-04-07; Form 4 filed 2026-04-09 (timely filing).
• Exercise: 4,991 shares at $146.34 — total exercise cost $730,383.
• Sale: 4,991 shares at weighted average $225.50 — total proceeds $1,125,486; sale executed in multiple trades at prices ranging $222.5643–$227.96.
• Net proceeds (sale proceeds minus exercise cost): ≈ $395,103.
• Footnotes: transaction executed under a Rule 10b5-1 plan adopted Oct 31, 2024; options have a vesting schedule of 1/3 per year (date options first became exercisable noted in filing).
• Shares owned after the transaction: not specified in the supplied filing excerpt.

Context
This is an option exercise followed by an immediate sale (a common "cashless" outcome when executives exercise options and sell shares). The use of a pre-established 10b5-1 plan means the trades were executed according to a prearranged schedule or instructions rather than being ad hoc. Sales by insiders are common and do not, by themselves, indicate company performance; purchases typically carry more weight for signaling.