ResMed Inc. (NYSE:RMD) Receives Consensus Recommendation of “Moderate Buy” from Analysts

ResMed Inc. (NYSE:RMD) has been given a consensus rating of “Moderate Buy” by the twelve ratings firms that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, five have assigned a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year price target among brokerages that have covered the stock in the last year is $225.70.

Several research firms have recently commented on RMD. Wolfe Research restated an “underperform” rating and issued a $180.00 target price on shares of ResMed in a research note on Wednesday, September 18th. StockNews.com upgraded shares of ResMed from a “hold” rating to a “buy” rating in a research report on Tuesday, October 15th. KeyCorp lifted their price objective on ResMed from $251.00 to $266.00 and gave the company an “overweight” rating in a report on Friday, October 25th. Robert W. Baird lifted their price target on ResMed from $280.00 to $283.00 and gave the company an “outperform” rating in a research note on Friday, October 25th. Finally, Bank of America increased their price objective on ResMed from $240.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, September 26th.

Insiders Place Their Bets

In other ResMed news, CEO Michael J. Farrell sold 14,683 shares of the business’s stock in a transaction that occurred on Monday, October 7th. The shares were sold at an average price of $231.91, for a total transaction of $3,405,134.53. Following the completion of the sale, the chief executive officer now directly owns 464,169 shares in the company, valued at $107,645,432.79. The trade was a 3.07 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Brett Sandercock sold 1,000 shares of the firm’s stock in a transaction on Monday, September 9th. The shares were sold at an average price of $246.42, for a total transaction of $246,420.00. Following the completion of the transaction, the chief financial officer now directly owns 96,812 shares in the company, valued at approximately $23,856,413.04. This represents a 1.02 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 62,174 shares of company stock worth $14,882,278 over the last three months. 0.71% of the stock is owned by insiders.

Institutional Trading of ResMed

Large investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp boosted its position in shares of ResMed by 51.4% in the second quarter. Bank of New York Mellon Corp now owns 5,772,761 shares of the medical equipment provider’s stock worth $1,105,022,000 after buying an additional 1,959,642 shares during the period. Marshall Wace LLP purchased a new position in ResMed in the 2nd quarter worth approximately $77,285,000. Geode Capital Management LLC boosted its holdings in ResMed by 10.9% in the 3rd quarter. Geode Capital Management LLC now owns 3,858,814 shares of the medical equipment provider’s stock worth $939,114,000 after acquiring an additional 380,383 shares during the period. Greenvale Capital LLP grew its position in ResMed by 61.1% in the second quarter. Greenvale Capital LLP now owns 725,000 shares of the medical equipment provider’s stock valued at $138,780,000 after acquiring an additional 275,000 shares in the last quarter. Finally, Caisse DE Depot ET Placement DU Quebec raised its stake in shares of ResMed by 726.3% during the third quarter. Caisse DE Depot ET Placement DU Quebec now owns 283,801 shares of the medical equipment provider’s stock valued at $69,281,000 after purchasing an additional 249,454 shares during the period. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Stock Performance

Shares of RMD stock opened at $243.78 on Wednesday. ResMed has a 52-week low of $151.95 and a 52-week high of $260.49. The stock’s 50-day moving average price is $241.86 and its 200 day moving average price is $224.56. The company has a quick ratio of 1.91, a current ratio of 2.92 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $35.79 billion, a PE ratio of 32.29, a price-to-earnings-growth ratio of 1.77 and a beta of 0.69.

ResMed (NYSE:RMD) last released its quarterly earnings results on Thursday, October 24th. The medical equipment provider reported $2.20 EPS for the quarter, topping the consensus estimate of $2.03 by $0.17. ResMed had a return on equity of 25.53% and a net margin of 23.15%. The business had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter in the prior year, the business earned $1.64 earnings per share. The company’s quarterly revenue was up 11.1% compared to the same quarter last year. As a group, equities research analysts forecast that ResMed will post 9.28 EPS for the current year.

ResMed Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 7th will be paid a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.87%. The ex-dividend date is Thursday, November 7th. ResMed’s dividend payout ratio is presently 28.08%.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company 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 ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.