Bank of America Raises ResMed (NYSE:RMD) Price Target to $270.00

ResMed (NYSE:RMD) had its price objective hoisted by Bank of America from $240.00 to $270.00 in a report released on Thursday morning, Benzinga reports. The brokerage currently has a buy rating on the medical equipment provider’s stock.

A number of other research analysts have also weighed in on RMD. KeyCorp lifted their target price on ResMed from $238.00 to $251.00 and gave the company an overweight rating in a report on Friday, August 2nd. Citigroup cut shares of ResMed from a buy rating to a neutral rating in a research note on Monday, June 24th. Needham & Company LLC reiterated a hold rating on shares of ResMed in a research note on Wednesday, September 18th. StockNews.com lowered shares of ResMed from a buy rating to a hold rating in a research report on Friday, August 30th. Finally, Royal Bank of Canada upped their price target on shares of ResMed from $204.00 to $206.00 and gave the stock a sector perform rating in a report on Friday, August 2nd. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, ResMed has an average rating of Moderate Buy and a consensus price target of $212.25.

ResMed Stock Performance

Shares of RMD stock opened at $239.00 on Thursday. The firm’s 50 day moving average is $230.72 and its 200 day moving average is $211.18. The stock has a market capitalization of $35.12 billion, a P/E ratio of 36.71, a PEG ratio of 2.46 and a beta of 0.69. ResMed has a 12 month low of $132.24 and a 12 month high of $255.18. The company has a current ratio of 2.59, a quick ratio of 1.69 and a debt-to-equity ratio of 0.14.

ResMed (NYSE:RMD) last posted its earnings results on Thursday, August 1st. The medical equipment provider reported $2.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.05. The firm had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.22 billion. ResMed had a return on equity of 25.00% and a net margin of 21.79%. The business’s quarterly revenue was up 6.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.60 earnings per share. On average, sell-side analysts anticipate that ResMed will post 8.92 earnings per share for the current year.

ResMed Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 19th. Stockholders of record on Thursday, August 15th were issued a $0.53 dividend. This is a boost from ResMed’s previous quarterly dividend of $0.48. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.89%. The ex-dividend date was Thursday, August 15th. ResMed’s dividend payout ratio is presently 32.57%.

Insider Activity at ResMed

In other ResMed news, CEO Michael J. Farrell sold 14,683 shares of the company’s stock in a transaction that occurred on Monday, July 8th. The stock was sold at an average price of $192.97, for a total value of $2,833,378.51. Following the completion of the sale, the chief executive officer now owns 440,799 shares of the company’s stock, valued at $85,060,983.03. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In other ResMed news, insider Justin Leong sold 48,000 shares of the business’s stock in a transaction on Monday, August 5th. The shares were sold at an average price of $217.07, for a total value of $10,419,360.00. Following the completion of the sale, the insider now directly owns 18,741 shares of the company’s stock, valued at $4,068,108.87. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael J. Farrell sold 14,683 shares of the firm’s stock in a transaction dated Monday, July 8th. The shares were sold at an average price of $192.97, for a total value of $2,833,378.51. Following the transaction, the chief executive officer now directly owns 440,799 shares in the company, valued at $85,060,983.03. The disclosure for this sale can be found here. In the last three months, insiders have sold 102,931 shares of company stock valued at $22,644,807. Corporate insiders own 1.21% of the company’s stock.

Institutional Investors Weigh In On ResMed

Several institutional investors have recently bought and sold shares of RMD. OFI Invest Asset Management purchased a new position in ResMed in the 2nd quarter worth approximately $32,000. BOK Financial Private Wealth Inc. bought a new position in shares of ResMed in the first quarter worth approximately $35,000. Versant Capital Management Inc increased its stake in shares of ResMed by 196.7% in the second quarter. Versant Capital Management Inc now owns 181 shares of the medical equipment provider’s stock worth $35,000 after buying an additional 120 shares during the period. Financial Connections Group Inc. bought a new stake in ResMed during the 2nd quarter valued at $37,000. Finally, Riverview Trust Co bought a new stake in ResMed during the 1st quarter valued at $42,000. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.