ResMed Inc. (NYSE:RMD) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts rate ResMed “Hold” overall: Nine of 16 analysts recommend holding the stock, while seven recommend buying it. The average 12-month price target is $243.23, below the reported opening price of $245.54.
• ResMed exceeded quarterly earnings expectations, reporting $2.95 in EPS versus a $2.89 consensus estimate, while revenue rose 8.6% year over year to $1.46 billion.
• The company increased its quarterly dividend from $0.60 to $0.66 per share, but insiders sold nearly 24,000 shares worth about $5.3 million over the past three months.

ResMed Inc. (NYSE:RMD - Get Free Report) has been given a consensus recommendation of "Hold" by the sixteen analysts that are presently covering the firm, Marketbeat reports. Nine equities research analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $243.23.

A number of analysts have weighed in on the stock. Royal Bank Of Canada upgraded shares of ResMed from a "sector perform" rating to an "outperform" rating and raised their target price for the company from $244.00 to $262.00 in a research report on Tuesday, September 15th. UBS Group reiterated a "buy" rating and issued a $300.00 target price on shares of ResMed in a research report on Tuesday, July 21st. Mizuho set a $240.00 price objective on shares of ResMed in a report on Tuesday, October 13th. Wells Fargo & Company cut their target price on shares of ResMed from $225.00 to $215.00 and set an "equal weight" rating on the stock in a research report on Friday, August 7th. Finally, Piper Sandler reduced their target price on shares of ResMed from $233.00 to $225.00 and set a "neutral" rating on the stock in a report on Friday, August 7th.

Insider Buying and Selling at ResMed

In related news, Director Peter Farrell sold 970 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total value of $227,688.10. Following the completion of the sale, the director directly owned 51,803 shares in the company, valued at $12,159,718.19. This represents a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 dated Wednesday, October 7th. The stock was sold at an average price of $226.33, for a total value of $1,129,613.03. Following the transaction, the chief executive officer directly owned 479,803 shares in the company, valued at $108,593,812.99. The trade was a 1.03% 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. In the last three months, insiders sold 23,943 shares of company stock worth $5,294,098. 0.58% of the stock is currently owned by insiders.

Institutional Trading of ResMed

Institutional investors have recently added to or reduced their stakes in the stock. V Square Quantitative Management LLC raised its position in ResMed by 6.1% in the 3rd quarter. V Square Quantitative Management LLC now owns 2,117 shares of the medical equipment provider's stock valued at $468,000 after buying an additional 122 shares during the last quarter. QRG Capital Management Inc. raised its holdings in shares of ResMed by 2.8% in the second quarter. QRG Capital Management Inc. now owns 25,169 shares of the medical equipment provider's stock valued at $4,905,000 after purchasing an additional 679 shares during the last quarter. State Street Corp raised its holdings in shares of ResMed by 0.6% in the second quarter. State Street Corp now owns 6,680,735 shares of the medical equipment provider's stock valued at $1,301,942,000 after purchasing an additional 37,567 shares during the last quarter. Tidal Investments LLC lifted its position in shares of ResMed by 21.1% during the second quarter. Tidal Investments LLC now owns 32,332 shares of the medical equipment provider's stock valued at $6,301,000 after purchasing an additional 5,627 shares in the last quarter. Finally, National Pension Service lifted its position in shares of ResMed by 15.5% during the second quarter. National Pension Service now owns 281,465 shares of the medical equipment provider's stock valued at $54,852,000 after purchasing an additional 37,680 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors.

ResMed Price Performance

ResMed stock opened at $245.54 on Wednesday. The firm has a market cap of $34.53 billion, a PE ratio of 23.54, a price-to-earnings-growth ratio of 1.48 and a beta of 0.75. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. The stock's fifty day moving average price is $228.19 and its two-hundred day moving average price is $214.63. ResMed has a one year low of $180.26 and a one year high of $277.67.

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

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th were issued a dividend of $0.66 per share. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.1%. This is a boost from ResMed's previous quarterly dividend of $0.60. The ex-dividend date was Thursday, August 20th. ResMed's dividend payout ratio (DPR) is presently 25.31%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.