ResMed (NYSE:RMD) Price Target Raised to $288.00

Key Points

• Royal Bank of Canada raised ResMed’s price target from $262 to $288 while maintaining an “outperform” rating, implying 24.17% upside from the prior close.
• ResMed shares fell 8.3% to $231.94 despite quarterly results exceeding expectations: EPS was $2.91 versus $2.67 expected, and revenue rose 5.9% year over year to $1.41 billion.
• Analyst sentiment remains mixed, with seven Buy ratings and ten Hold ratings producing a consensus “Hold” rating and an average target price of $251.

ResMed (NYSE:RMD - Get Free Report) had its price target boosted by equities researchers at Royal Bank Of Canada from $262.00 to $288.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an "outperform" rating on the medical equipment provider's stock. Royal Bank Of Canada's target price would suggest a potential upside of 24.17% from the company's previous close.

Several other brokerages also recently issued reports on RMD. Citigroup reissued a "neutral" rating on shares of ResMed in a research note on Thursday, September 10th. Needham & Company LLC reaffirmed a "hold" rating on shares of ResMed in a research report on Friday. UBS Group reiterated a "buy" rating and issued a $300.00 price objective on shares of ResMed in a research note on Tuesday, July 21st. Rothschild & Co Redburn started coverage on shares of ResMed in a research report on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 target price for the company. Finally, Mizuho set a $270.00 target price on shares of ResMed in a research note on Friday. Seven research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, ResMed has a consensus rating of "Hold" and a consensus target price of $251.00.

ResMed Trading Down 8.3%

NYSE RMD traded down $20.89 on Friday, hitting $231.94. 1,650,374 shares of the stock were exchanged, compared to its average volume of 1,293,578. The company's 50-day moving average price is $231.83 and its two-hundred day moving average price is $225.57. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. ResMed has a 52-week low of $180.26 and a 52-week high of $277.67. The company has a market capitalization of $32.62 billion, a price-to-earnings ratio of 22.23, a P/E/G ratio of 1.53 and a beta of 0.75.

ResMed (NYSE:RMD - Get Free Report) last issued its earnings results on Thursday, October 29th. The medical equipment provider reported $2.91 EPS for the quarter, topping the consensus estimate of $2.67 by $0.24. ResMed had a return on equity of 25.58% and a net margin of 26.94%. The business had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same quarter last year, the firm posted $2.55 earnings per share. ResMed's revenue was up 5.9% compared to the same quarter last year. Research analysts predict that ResMed will post 12.11 EPS for the current year.

Insider Buying and Selling at ResMed

In other news, General Counsel Michael J. Rider sold 400 shares of the firm's stock in a transaction dated Friday, October 23rd. The stock was sold at an average price of $255.00, for a total value of $102,000.00. Following the sale, the general counsel directly owned 12,318 shares of the company's stock, valued at approximately $3,141,090. This trade represents a 3.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of ResMed 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 completion of the transaction, 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 24,343 shares of company stock worth $5,396,098 over the last three months. Corporate insiders own 0.58% of the company's stock.

Hedge Funds Weigh In On ResMed

Hedge funds have recently made changes to their positions in the business. Bell Investment Advisors Inc bought a new position in ResMed during the second quarter worth about $26,000. Trust Co. of Vermont acquired a new stake in ResMed in the 2nd quarter valued at $39,000. Kelleher Financial Advisors acquired a new stake in ResMed in the 2nd quarter valued at $47,000. Provenance Wealth Advisors LLC bought a new stake in ResMed in the third quarter valued at $55,000. Finally, Ballast Advisors LLC acquired a new position in ResMed during the first quarter worth $84,000. Institutional investors and hedge funds own 54.98% of the company's stock.

Key Stories Impacting ResMed

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed reported adjusted earnings of $2.91 per share, well above the $2.67 analyst consensus and up from $2.55 a year earlier. Revenue increased 5.9% year over year to $1.41 billion, also exceeding estimates of $1.39 billion. ResMed Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Sustained demand for sleep devices, productivity improvements and gross-margin expansion supported the quarterly performance, providing evidence that ResMed continues to convert sales growth into stronger profitability. RMD Stock Up on Q1 Earnings and Revenue Beat
• Positive Sentiment: The company declared a quarterly dividend of $0.66 per share, or $2.64 annually, reinforcing its shareholder-return profile. The dividend yield is approximately 1.1%. ResMed Dividend Information
• Neutral Sentiment: KeyCorp raised its price target from $267 to $277 and maintained an Overweight rating, implying substantial potential upside based on the cited share price. However, the target is an analyst opinion rather than a change to company guidance. KeyCorp Raises ResMed Price Target
• Negative Sentiment: RMD’s decline following the earnings release suggests the stronger-than-expected results were already reflected in the stock or that investors wanted faster growth or more upbeat forward commentary. The roughly 6% revenue increase remains healthy but may have appeared less compelling relative to the company’s valuation.

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.

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