ResMed Inc. (RMD) – What Are Investment Firms Thinking About This Stock?

Shares of ResMed Inc. (NYSE:RMD) have earned a consensus rating of “Hold” from the sixteen ratings firms that are covering the stock, Marketbeat reports. Nine investment analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $243.23.

RMD has been the subject of several recent analyst reports. Rothschild & Co Redburn started coverage on ResMed in a research note on Wednesday, August 19th. They issued a “neutral” rating and a $230.00 price target for the company. Robert W. Baird set a $213.00 price target on shares of ResMed in a research note on Friday, August 7th. KeyCorp upped their price objective on ResMed from $255.00 to $267.00 and gave the stock an “overweight” rating in a report on Monday, August 31st. Weiss Ratings raised shares of ResMed from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Finally, Citigroup restated a “neutral” rating on shares of ResMed in a research report on Thursday, September 10th.

ResMed Stock Performance

Shares of RMD stock opened at $252.79 on Wednesday. The company’s 50-day moving average is $229.70 and its 200 day moving average is $215.19. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. The company has a market capitalization of $35.55 billion, a price-to-earnings ratio of 24.24, a price-to-earnings-growth ratio of 1.55 and a beta of 0.75. ResMed has a one year low of $180.26 and a one year high of $277.67.

ResMed (NYSE:RMD) last released its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.89 by $0.06. The business had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%. The business’s quarterly revenue was up 8.6% compared to the same quarter last year. During the same period in the previous year, the company posted $2.55 EPS. Sell-side analysts expect that ResMed will post 12.11 EPS for the current fiscal year.

ResMed Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th were paid a dividend of $0.66 per share. The ex-dividend date of this dividend was Thursday, August 20th. This is an increase from ResMed’s previous quarterly dividend of $0.60. This represents a $2.64 annualized dividend and a yield of 1.0%. ResMed’s payout ratio is presently 25.31%.

Insider Buying and Selling

In other news, Director Peter C. Farrell sold 8,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total value of $1,800,000.00. Following the sale, the director directly owned 52,773 shares in the company, valued at approximately $11,873,925. This represents a 13.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the company’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the completion of the transaction, the chief executive officer owned 466,256 shares in the company, valued at $95,904,196.64. This represents a 1.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 23,943 shares of company stock valued at $5,294,098. Company insiders own 0.58% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Bell Investment Advisors Inc acquired a new position in ResMed in the 2nd quarter worth approximately $26,000. Trust Co. of Vermont acquired a new stake in ResMed during the second quarter valued at $39,000. Kelleher Financial Advisors purchased a new position in ResMed in the second quarter valued at $47,000. Ballast Advisors LLC purchased a new position in ResMed in the first quarter valued at $84,000. Finally, Harbor Investment Advisory LLC increased its holdings in ResMed by 82.6% in the second quarter. Harbor Investment Advisory LLC now owns 409 shares of the medical equipment provider’s stock valued at $80,000 after buying an additional 185 shares in the last quarter. Hedge funds and other institutional investors own 54.98% of the company’s stock.

ResMed Company Profile

ResMed Inc is a medical equipment and software company that develops solutions for sleep-disordered breathing, respiratory conditions and other chronic diseases. The company is best known for its positive airway pressure (PAP) devices used to treat obstructive sleep apnea, along with masks, accessories and related patient support services.

ResMed also provides cloud-connected health technology, including remote-monitoring platforms and software used by healthcare providers, medical equipment suppliers and care organizations.