ResMed Inc. (NYSE:RMD) Given Average Rating of "Hold" by Brokerages

Key Points

• Analyst consensus is “Hold”: Ten of 17 analysts rate ResMed neutral and seven recommend buying, with an average 12-month price target of approximately $240.31.
• ResMed reported quarterly adjusted earnings of $2.95 per share, exceeding estimates, while revenue of $1.46 billion rose 8.6% year over year.
• The company increased its quarterly dividend from $0.60 to $0.66 per share, equivalent to an annualized dividend of $2.64 and a 1.1% yield.

Shares of ResMed Inc. (NYSE:RMD - Get Free Report) have been assigned a consensus rating of "Hold" from the seventeen research firms that are covering the company, Marketbeat Ratings reports. Ten research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $240.3077.

A number of research firms recently weighed in on RMD. Piper Sandler decreased their target price on ResMed from $233.00 to $225.00 and set a "neutral" rating on the stock in a report on Friday, August 7th. Mizuho cut their price target on ResMed from $235.00 to $220.00 and set an "outperform" rating for the company in a report on Wednesday, July 15th. Robert W. Baird set a $213.00 price objective on shares of ResMed in a research report on Friday, August 7th. Royal Bank Of Canada lifted their price objective on shares of ResMed from $234.00 to $244.00 and gave the stock a "sector perform" rating in a research report on Friday, August 7th. Finally, Jefferies Financial Group cut their target price on shares of ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, July 10th.

Insider Activity

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the completion of the sale, the chief executive officer directly owned 466,256 shares in the company, valued at $95,904,196.64. This trade represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at 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 the business's 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 owned 52,773 shares of the company's stock, valued at approximately $11,873,925. This represents a 13.16% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 22,973 shares of company stock worth $4,885,436. Insiders own 0.65% of the company's stock.

Institutional Trading of ResMed

Several hedge funds have recently added to or reduced their stakes in RMD. California State Teachers Retirement System increased its position in ResMed by 19,648.1% during the 2nd quarter. California State Teachers Retirement System now owns 43,963,369 shares of the medical equipment provider's stock worth $8,567,581,000 after buying an additional 43,740,748 shares during the period. BlackRock Inc. bought a new stake in shares of ResMed in the second quarter valued at about $2,400,375,000. State Street Corp grew its stake in shares of ResMed by 1.2% in the fourth quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider's stock valued at $1,595,862,000 after acquiring an additional 76,244 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of ResMed by 0.7% in the first quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider's stock valued at $1,105,651,000 after acquiring an additional 34,732 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in ResMed by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider's stock worth $1,032,877,000 after acquiring an additional 51,218 shares during the period. 54.98% of the stock is owned by institutional investors and hedge funds.

ResMed Trading Down 0.1%

Shares of NYSE:RMD opened at $240.03 on Tuesday. ResMed has a 52-week low of $180.26 and a 52-week high of $284.87. 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 $34.62 billion, a P/E ratio of 23.01, a price-to-earnings-growth ratio of 1.51 and a beta of 0.76. The company has a 50-day simple moving average of $212.84 and a 200 day simple moving average of $218.62.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, topping analysts' consensus estimates of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the previous year, the business earned $2.55 earnings per share. The business's revenue was up 8.6% compared to the same quarter last year. Sell-side analysts forecast that ResMed will post 12.03 earnings per share for the current year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, August 20th will be paid a $0.66 dividend. This is an increase from ResMed's previous quarterly dividend of $0.60. The ex-dividend date is Thursday, August 20th. This represents a $2.64 dividend on an annualized basis and a yield of 1.1%. ResMed's dividend payout ratio (DPR) is currently 25.31%.

ResMed Company Profile

ResMed NYSE: RMD is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed's product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.

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