Wells Fargo & Company Issues Positive Forecast for ResMed (NYSE:RMD) Stock Price

Key Points

• Wells Fargo raised ResMed’s price target from $215 to $250 while maintaining an “equal weight” rating, implying approximately 7.8% upside from the prior close. MarketBeat analysts overall rate the stock “Hold,” with an average target of $251.
• ResMed exceeded quarterly expectations, reporting $2.91 in EPS versus $2.67 expected and revenue of $1.41 billion, up 5.9% year over year and above the $1.39 billion consensus.
• Despite the earnings beat, shares fell to $231.94 during Friday trading. KeyCorp raised its target to $277, while company insiders sold about $5.4 million worth of stock over the past quarter.

ResMed (NYSE:RMD - Get Free Report) had its price target hoisted by equities research analysts at Wells Fargo & Company from $215.00 to $250.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has an "equal weight" rating on the medical equipment provider's stock. Wells Fargo & Company's target price suggests a potential upside of 7.79% from the stock's previous close.

Other equities analysts also recently issued reports about the company. UBS Group reiterated a "buy" rating and set a $300.00 price objective on shares of ResMed in a research report on Tuesday, July 21st. Robert W. Baird set a $213.00 target price on shares of ResMed in a report on Friday, August 7th. Rothschild & Co Redburn began coverage on ResMed in a report on Wednesday, August 19th. They set a "neutral" rating and a $230.00 price objective for the company. Citigroup reissued a "neutral" rating on shares of ResMed in a research report on Thursday, September 10th. Finally, KeyCorp upped their price objective on shares of ResMed from $267.00 to $277.00 and gave the stock an "overweight" rating in a report on Friday. Seven equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $251.00.

ResMed Stock Performance

RMD traded down $20.89 during trading hours on Friday, hitting $231.94. 1,650,374 shares of the stock were exchanged, compared to its average volume of 1,293,578. The stock has a market cap of $32.62 billion, a price-to-earnings ratio of 22.23, a price-to-earnings-growth ratio of 1.53 and a beta of 0.75. ResMed has a 12 month low of $180.26 and a 12 month high of $277.67. The stock has a 50-day simple moving average of $231.83 and a 200-day simple moving average of $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 (NYSE:RMD - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The medical equipment provider reported $2.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.67 by $0.24. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The company had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period last year, the firm posted $2.55 EPS. The company's revenue for the quarter was up 5.9% on a year-over-year basis. Analysts anticipate that ResMed will post 12.11 earnings per share for the current year.

Insider Activity at ResMed

In related news, CEO Michael Farrell sold 4,991 shares of the business's stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $226.33, for a total value of $1,129,613.03. Following the completion of the transaction, the chief executive officer owned 479,803 shares in the company, valued at $108,593,812.99. The trade was a 1.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter Farrell sold 970 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $234.73, for a total transaction of $227,688.10. Following the completion of the transaction, the director directly owned 51,803 shares in the company, valued at approximately $12,159,718.19. The trade was a 1.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 24,343 shares of company stock valued at $5,396,098 over the last quarter. Corporate insiders own 0.58% of the company's stock.

Hedge Funds Weigh In On ResMed

Several institutional investors and hedge funds have recently made changes to their positions in RMD. Provenance Wealth Advisors LLC bought a new position in ResMed during the 3rd quarter worth $55,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in ResMed in the third quarter valued at approximately $7,916,000. Moss Adams Wealth Advisors LLC increased its stake in shares of ResMed by 3.1% in the third quarter. Moss Adams Wealth Advisors LLC now owns 3,477 shares of the medical equipment provider's stock valued at $769,000 after buying an additional 103 shares during the period. MGO One Seven LLC bought a new stake in shares of ResMed in the third quarter worth $300,000. Finally, United Asset Strategies Inc. grew its position in shares of ResMed by 1.9% in the 3rd quarter. United Asset Strategies Inc. now owns 16,934 shares of the medical equipment provider's stock valued at $3,744,000 after buying an additional 318 shares during the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

More ResMed News

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.

About ResMed

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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