ResMed (NYSE:RMD) Hits New 12-Month High – Here’s What Happened

ResMed Inc. (NYSE:RMD) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $293.11 and last traded at $292.56, with a volume of 140343 shares changing hands. The stock had previously closed at $288.34.

Analysts Set New Price Targets

RMD has been the topic of several research analyst reports. Royal Bank Of Canada lifted their target price on shares of ResMed from $294.00 to $300.00 and gave the company an “outperform” rating in a research report on Friday, August 1st. Piper Sandler lifted their target price on shares of ResMed from $248.00 to $270.00 and gave the company a “neutral” rating in a research report on Friday, August 1st. Wall Street Zen lowered shares of ResMed from a “buy” rating to a “hold” rating in a research report on Sunday, August 10th. Morgan Stanley set a $286.00 target price on shares of ResMed and gave the company an “overweight” rating in a research report on Tuesday, May 20th. Finally, William Blair upgraded shares of ResMed to a “strong-buy” rating in a research report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $274.83.

ResMed Stock Up 1.8%

The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53. The business’s 50 day simple moving average is $267.91 and its 200 day simple moving average is $244.54. The company has a market capitalization of $42.97 billion, a PE ratio of 30.86, a P/E/G ratio of 1.97 and a beta of 0.77.

ResMed (NYSE:RMD) last issued its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping analysts’ consensus estimates of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the previous year, the firm earned $2.08 earnings per share. ResMed’s quarterly revenue was up 10.2% compared to the same quarter last year. As a group, analysts anticipate that ResMed Inc. will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 0.8%. This is a boost from ResMed’s previous quarterly dividend of $0.53. The ex-dividend date of this dividend is Wednesday, August 13th. ResMed’s payout ratio is presently 25.24%.

Insiders Place Their Bets

In other news, Director Peter C. Farrell sold 945 shares of the business’s stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total value of $241,438.05. Following the sale, the director directly owned 68,273 shares of the company’s stock, valued at approximately $17,443,068.77. The trade was a 1.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Hernandez sold 2,575 shares of the business’s stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $287.10, for a total transaction of $739,282.50. Following the completion of the sale, the director directly owned 4,045 shares in the company, valued at $1,161,319.50. This trade represents a 38.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 27,638 shares of company stock valued at $7,311,177 over the last ninety days. Company insiders own 0.71% of the company’s stock.

Institutional Investors Weigh In On ResMed

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Marex Group plc purchased a new stake in shares of ResMed in the 2nd quarter valued at approximately $361,000. Advisory Services Network LLC raised its stake in shares of ResMed by 3.8% in the 2nd quarter. Advisory Services Network LLC now owns 11,013 shares of the medical equipment provider’s stock valued at $2,995,000 after acquiring an additional 408 shares during the period. CYBER HORNET ETFs LLC purchased a new stake in shares of ResMed in the 2nd quarter valued at approximately $100,000. FORA Capital LLC purchased a new stake in shares of ResMed in the 2nd quarter valued at approximately $4,131,000. Finally, Evergreen Capital Management LLC grew its holdings in shares of ResMed by 7.3% in the second quarter. Evergreen Capital Management LLC now owns 1,745 shares of the medical equipment provider’s stock valued at $450,000 after purchasing an additional 118 shares in the last quarter. 54.98% of the stock is 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. 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.