ResMed Inc. (NYSE:RMD) Stock Now Rated "Hold" by Wall Street Brokerages

Key Points

• Wall Street’s consensus rating is “Hold”: Of 18 analysts covering ResMed, 11 rate the stock Hold and seven rate it Buy; the average one-year price target is $253.69.
• ResMed beat quarterly expectations, reporting EPS of $2.91 versus $2.67 forecast and revenue of $1.41 billion versus $1.39 billion. Revenue grew 5.9% year over year.
• The company declared a quarterly dividend of $0.66 per share, equivalent to $2.64 annually and a 1.1% yield.

ResMed Inc. (NYSE:RMD - Get Free Report) has received an average rating of "Hold" from the eighteen ratings firms that are presently covering the firm, MarketBeat reports. Eleven equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $253.69.

Several equities research analysts recently weighed in on RMD shares. Weiss Ratings upgraded shares of ResMed from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Mizuho set a $270.00 target price on shares of ResMed in a report on Friday, October 30th. Robert W. Baird set a $213.00 target price on ResMed in a research note on Friday, August 7th. Royal Bank Of Canada upped their target price on ResMed from $262.00 to $288.00 and gave the company an "outperform" rating in a report on Friday, October 30th. Finally, Piper Sandler dropped their price target on ResMed from $233.00 to $225.00 and set a "neutral" rating on the stock in a research report on Friday, August 7th.

ResMed Stock Performance

RMD stock traded up $0.68 during trading on Friday, hitting $239.57. 853,163 shares of the company's stock traded hands, compared to its average volume of 1,510,457. The stock has a market capitalization of $33.70 billion, a price-to-earnings ratio of 21.82, a price-to-earnings-growth ratio of 1.45 and a beta of 0.77. ResMed has a 52 week low of $180.26 and a 52 week high of $277.67. The stock has a fifty day moving average price of $232.20 and a two-hundred day moving average price of $224.41. The company has a quick ratio of 1.88, a current ratio of 2.65 and a debt-to-equity ratio of 0.04.

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 27.79% and a return on equity of 26.42%. 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. As a group, equities analysts anticipate that ResMed will post 12.14 EPS for the current fiscal year.

ResMed Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, November 12th will be given a dividend of $0.66 per share. The ex-dividend date is Thursday, November 12th. This represents a $2.64 dividend on an annualized basis and a yield of 1.1%. ResMed's payout ratio is currently 24.04%.

Insider Activity at ResMed

In related news, CEO Michael Farrell sold 4,993 shares of the company's stock in a transaction on Monday, November 9th. The stock was sold at an average price of $235.35, for a total transaction of $1,175,102.55. Following the completion of the transaction, the chief executive officer directly owned 479,803 shares in the company, valued at $112,921,636.05. This represents a 1.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 16,345 shares of company stock worth $3,744,602 in the last 90 days. 0.58% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ResMed

Several institutional investors have recently modified their holdings of RMD. Meeder Advisory Services Inc. increased its holdings in shares of ResMed by 16.5% in the 3rd quarter. Meeder Advisory Services Inc. now owns 2,642 shares of the medical equipment provider's stock worth $584,000 after acquiring an additional 374 shares during the period. First Trust Advisors LP lifted its position in ResMed by 18.0% in the 3rd quarter. First Trust Advisors LP now owns 2,688,777 shares of the medical equipment provider's stock valued at $594,489,000 after purchasing an additional 410,081 shares during the last quarter. Allianz SE lifted its position in ResMed by 533.3% in the 3rd quarter. Allianz SE now owns 988 shares of the medical equipment provider's stock valued at $218,000 after purchasing an additional 832 shares during the last quarter. Advisors Asset Management Inc. bought a new stake in ResMed in the 3rd quarter valued at about $2,831,000. Finally, Voya Investment Management LLC boosted its stake in ResMed by 0.5% during the 3rd quarter. Voya Investment Management LLC now owns 33,766 shares of the medical equipment provider's stock valued at $7,466,000 after purchasing an additional 166 shares during the period. Institutional investors own 54.98% of the company's stock.

About ResMed

ResMed is a medical technology company that develops products and software for people with sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions. Its devices include continuous positive airway pressure (CPAP) and bilevel machines, ventilators and related masks and accessories. The company also provides cloud-connected software for managing sleep and respiratory care, along with digital tools used by home medical equipment providers and post-acute 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.