ResMed Inc. (NYSE:RMD) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Analysts maintain a consensus “Hold” rating on ResMed, with nine holds and seven buys among 16 covering firms. The average 12-month price target is $241.69, while recent targets range from $225 to $267.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 in EPS on $1.46 billion in revenue, with revenue up 8.6% year over year. The company also raised its quarterly dividend to $0.66, resulting in a 1.2% annual yield.
• Insiders sold 23,943 shares worth about $5.3 million over the past 90 days under pre-arranged trading plans, while institutional investors own approximately 55% of the company.

Shares of ResMed Inc. (NYSE:RMD - Get Free Report) have earned an average recommendation of "Hold" from the sixteen ratings firms that are currently covering the company, MarketBeat Ratings reports. Nine investment 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 issued ratings on the stock in the last year is $241.69.

Several equities research analysts recently commented on RMD shares. Weiss Ratings raised shares of ResMed from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Citigroup reiterated a "neutral" rating on shares of ResMed in a report on Thursday, September 10th. Royal Bank Of Canada raised ResMed from a "sector perform" rating to an "outperform" rating and lifted their price target for the company from $244.00 to $262.00 in a research note on Tuesday, September 15th. Jefferies Financial Group cut their price target on ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a report on Friday, July 10th. Finally, KeyCorp upped their price objective on ResMed from $255.00 to $267.00 and gave the stock an "overweight" rating in a research report on Monday, August 31st.

ResMed Stock Performance

Shares of RMD stock opened at $222.19 on Friday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. ResMed has a 52 week low of $180.26 and a 52 week high of $284.87. The company's 50 day moving average price is $221.37 and its two-hundred day moving average price is $214.80. The company has a market capitalization of $32.05 billion, a P/E ratio of 21.30, a price-to-earnings-growth ratio of 1.40 and a beta of 0.77.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.06. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The company had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the prior year, the company earned $2.55 earnings per share. The business's quarterly revenue was up 8.6% compared to the same quarter last year. On average, analysts expect that ResMed will post 12.06 earnings per share for the current fiscal year.

ResMed Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th were paid a $0.66 dividend. This represents a $2.64 annualized dividend and a yield of 1.2%. The ex-dividend date was Thursday, August 20th. This is a positive change from ResMed's previous quarterly dividend of $0.60. ResMed's dividend payout ratio (DPR) is presently 25.31%.

Insider Activity at ResMed

In other news, Director Peter Farrell sold 8,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the director directly owned 52,773 shares of the company's stock, valued at $11,873,925. This trade represents a 13.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Farrell sold 4,991 shares of ResMed 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 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 23,943 shares of company stock valued at $5,255,268 over the last ninety days. Company insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kera Capital Partners Inc. boosted its stake in ResMed by 6.6% in the 4th quarter. Kera Capital Partners Inc. now owns 841 shares of the medical equipment provider's stock valued at $217,000 after purchasing an additional 52 shares during the period. Andina Capital Management LLC grew its holdings in ResMed by 2.9% in the 4th quarter. Andina Capital Management LLC now owns 1,988 shares of the medical equipment provider's stock valued at $479,000 after buying an additional 56 shares in the last quarter. Turtle Creek Wealth Advisors LLC increased its position in ResMed by 6.2% during the 1st quarter. Turtle Creek Wealth Advisors LLC now owns 994 shares of the medical equipment provider's stock worth $223,000 after buying an additional 58 shares during the period. Meridian Management Co. increased its position in ResMed by 0.6% during the 1st quarter. Meridian Management Co. now owns 11,332 shares of the medical equipment provider's stock worth $2,544,000 after buying an additional 70 shares during the period. Finally, Glenmede Trust Co. NA lifted its holdings in shares of ResMed by 1.3% during the first quarter. Glenmede Trust Co. NA now owns 5,479 shares of the medical equipment provider's stock worth $1,230,000 after buying an additional 71 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

About ResMed

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.

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