ResMed (NYSE:RMD) Stock Rating Upgraded by CLSA

Key Points

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CLSA upgraded shares of ResMed (NYSE:RMD - Free Report) from a hold rating to an outperform rating in a research note released on Tuesday, Marketbeat.com reports.

A number of other equities analysts also recently weighed in on the company. Morgan Stanley set a $286.00 target price on ResMed and gave the company an "overweight" rating in a report on Tuesday, May 20th. William Blair raised ResMed to a "strong-buy" rating in a research note on Friday, August 1st. UBS Group upped their target price on ResMed from $285.00 to $325.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Royal Bank Of Canada upped their target price on ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Finally, Mizuho upped their target price on ResMed from $270.00 to $290.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $278.36.

ResMed Trading Up 1.2%

NYSE RMD traded up $3.24 on Tuesday, hitting $277.05. 943,967 shares of the company were exchanged, compared to its average volume of 960,113. The company's 50 day moving average price is $272.54 and its 200-day moving average price is $247.31. 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 firm has a market capitalization of $40.56 billion, a P/E ratio of 29.13, a price-to-earnings-growth ratio of 1.83 and a beta of 0.85. ResMed has a twelve month low of $199.92 and a twelve month high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.08. The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.33 billion. ResMed had a return on equity of 25.62% and a net margin of 27.22%.The business's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.08 EPS. Analysts predict that ResMed will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be given a $0.60 dividend. This is a positive change from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 14th. ResMed's dividend payout ratio (DPR) is currently 25.24%.

Insider Activity

In other news, Director John Hernandez sold 2,575 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $287.10, for a total value of $739,282.50. Following the completion of the sale, the director directly owned 4,045 shares of the company's stock, valued at approximately $1,161,319.50. This represents a 38.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $279.48, for a total value of $2,238,355.32. Following the completion of the sale, the chief executive officer directly owned 455,503 shares of the company's stock, valued at $127,303,978.44. This represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 27,597 shares of company stock valued at $7,301,182. 0.71% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RMD. Ballentine Partners LLC raised its stake in ResMed by 6.3% during the first quarter. Ballentine Partners LLC now owns 1,782 shares of the medical equipment provider's stock worth $399,000 after acquiring an additional 105 shares in the last quarter. Golden State Wealth Management LLC raised its stake in ResMed by 384.8% during the first quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock worth $36,000 after acquiring an additional 127 shares in the last quarter. Exchange Traded Concepts LLC raised its stake in ResMed by 393.0% during the first quarter. Exchange Traded Concepts LLC now owns 2,529 shares of the medical equipment provider's stock worth $566,000 after acquiring an additional 2,016 shares in the last quarter. Private Advisor Group LLC raised its stake in ResMed by 18.3% during the first quarter. Private Advisor Group LLC now owns 3,244 shares of the medical equipment provider's stock worth $726,000 after acquiring an additional 501 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its stake in ResMed by 61.4% during the fourth quarter. BNP Paribas Financial Markets now owns 274,417 shares of the medical equipment provider's stock worth $62,756,000 after acquiring an additional 104,377 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

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.