ResMed (NYSE:RMD) Shares Gap Up After Better-Than-Expected Earnings

ResMed Inc. (NYSE:RMD - Get Free Report) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $183.42, but opened at $203.02. ResMed shares last traded at $210.06, with a volume of 882,688 shares trading hands.

The medical equipment provider reported $2.13 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.22. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.17 billion. ResMed had a net margin of 19.77% and a return on equity of 23.86%. ResMed's quarterly revenue was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.68 earnings per share.

Analyst Upgrades and Downgrades

RMD has been the topic of several research reports. Needham & Company LLC increased their price objective on shares of ResMed from $224.00 to $236.00 and gave the stock a "buy" rating in a research note on Friday. JPMorgan Chase & Co. increased their price objective on shares of ResMed from $160.00 to $195.00 and gave the stock an "overweight" rating in a research note on Tuesday, January 9th. KeyCorp upped their target price on shares of ResMed from $227.00 to $238.00 and gave the stock an "overweight" rating in a research report on Friday. Royal Bank of Canada upped their target price on shares of ResMed from $187.00 to $200.00 and gave the stock a "sector perform" rating in a research report on Friday. Finally, Mizuho restated a "buy" rating and issued a $215.00 target price on shares of ResMed in a research report on Wednesday, March 27th. Four equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company's stock. According to MarketBeat, ResMed presently has a consensus rating of "Moderate Buy" and a consensus price target of $202.80.

Insider Activity

In other news, General Counsel Michael J. Rider sold 200 shares of the stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $173.25, for a total value of $34,650.00. Following the completion of the transaction, the general counsel now directly owns 6,688 shares in the company, valued at $1,158,696. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, General Counsel Michael J. Rider sold 200 shares of the stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $173.25, for a total value of $34,650.00. Following the completion of the transaction, the general counsel now directly owns 6,688 shares in the company, valued at $1,158,696. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Peter C. Farrell sold 10,935 shares of the stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $182.66, for a total transaction of $1,997,387.10. Following the completion of the transaction, the director now owns 157,404 shares of the company's stock, valued at $28,751,414.64. The disclosure for this sale can be found here. Insiders sold 11,216 shares of company stock worth $2,046,617 over the last three months. Corporate insiders own 1.21% of the company's stock.

Institutional Investors Weigh In On ResMed

Several hedge funds have recently made changes to their positions in RMD. Bank of New York Mellon Corp lifted its position in shares of ResMed by 230.3% in the 1st quarter. Bank of New York Mellon Corp now owns 3,813,119 shares of the medical equipment provider's stock valued at $755,112,000 after acquiring an additional 2,658,709 shares in the last quarter. Norges Bank purchased a new stake in ResMed in the 4th quarter worth approximately $233,966,000. Morgan Stanley lifted its position in ResMed by 102.4% in the 3rd quarter. Morgan Stanley now owns 2,329,618 shares of the medical equipment provider's stock worth $344,481,000 after buying an additional 1,178,547 shares in the last quarter. LGT Capital Partners LTD. purchased a new stake in ResMed in the 4th quarter worth approximately $117,621,000. Finally, Los Angeles Capital Management LLC lifted its position in ResMed by 3,599.0% in the 1st quarter. Los Angeles Capital Management LLC now owns 499,031 shares of the medical equipment provider's stock worth $98,823,000 after buying an additional 485,540 shares in the last quarter. Hedge funds and other institutional investors own 54.98% of the company's stock.

ResMed Trading Up 18.9 %

The company has a current ratio of 3.11, a quick ratio of 1.89 and a debt-to-equity ratio of 0.27. The company has a market cap of $32.07 billion, a PE ratio of 36.04, a P/E/G ratio of 2.25 and a beta of 0.67. The business's 50-day simple moving average is $187.07 and its 200-day simple moving average is $171.97.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It 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 technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.