ResMed (NYSE:RMD) Share Price Crosses Above 50 Day Moving Average - Should You Sell?

Key Points

• ResMed shares rose above their 50-day moving average, reaching $242.63 and last trading near $242.38, up about 3%. The stock’s 50-day and 200-day averages were $226.84 and $214.24, respectively.
• Analyst sentiment remains mixed, with seven Buy ratings and nine Holds producing an overall “Hold” consensus and an average price target of $243.23. Targets range from $225 to $262.
• ResMed reported quarterly EPS of $2.95, beating estimates, while revenue rose 8.6% year over year to $1.46 billion. The company also increased its quarterly dividend to $0.66 per share, although insiders sold shares totaling about $5.3 million over the past quarter.

ResMed Inc. (NYSE:RMD - Get Free Report) shares passed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $226.84 and traded as high as $242.63. ResMed shares last traded at $242.3790, with a volume of 1,090,462 shares traded.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Weiss Ratings raised shares of ResMed from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Rothschild & Co Redburn began coverage on shares of ResMed in a research report on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 price target for the company. Jefferies Financial Group decreased their price objective 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. Citigroup reaffirmed a "neutral" rating on shares of ResMed in a research note on Thursday, September 10th. Finally, Royal Bank Of Canada upgraded shares of ResMed from a "sector perform" rating to an "outperform" rating and lifted their price objective for the stock from $244.00 to $262.00 in a research report on Tuesday, September 15th. Seven analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $243.23.

ResMed Trading Up 3.0%

The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06. The company has a market cap of $34.09 billion, a PE ratio of 23.24, a P/E/G ratio of 1.45 and a beta of 0.75. The business's 50-day simple moving average is $226.84 and its 200-day simple moving average is $214.24.

ResMed (NYSE:RMD - Get Free Report) last issued its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 analyst estimates of $1.46 billion. During the same quarter last year, the business posted $2.55 EPS. The company's revenue for the quarter was up 8.6% on a year-over-year basis. As a group, analysts expect that ResMed Inc. will post 12.08 EPS for the current fiscal year.

ResMed Increases Dividend

The company 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. The ex-dividend date was Thursday, August 20th. This represents a $2.64 annualized dividend and a dividend yield of 1.1%. This is a positive change from ResMed's previous quarterly dividend of $0.60. ResMed's dividend payout ratio is presently 25.31%.

Insider Activity

In related news, Director Peter Farrell sold 970 shares of the business's stock in a transaction that occurred 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 owned 51,803 shares of the company's stock, valued at approximately $12,159,718.19. The trade was a 1.84% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Farrell sold 4,991 shares of the stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer owned 479,803 shares in the company, valued at $108,593,812.99. This represents a 1.03% decrease in their position. 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. Over the last quarter, insiders have sold 23,943 shares of company stock valued at $5,294,098. 0.58% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of RMD. American Capital Management Inc. acquired a new stake in ResMed in the 2nd quarter worth approximately $44,522,000. Hsbc Holdings PLC grew its holdings in ResMed by 17.6% during the fourth quarter. Hsbc Holdings PLC now owns 328,785 shares of the medical equipment provider's stock valued at $79,321,000 after purchasing an additional 49,253 shares during the last quarter. BlackRock Inc. acquired a new position in ResMed during the second quarter valued at approximately $2,400,375,000. Polymer Capital Management HK LTD acquired a new position in ResMed during the second quarter valued at approximately $972,000. Finally, Tidal Investments LLC grew its holdings in 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 during the last quarter. Institutional investors own 54.98% of the company's stock.

ResMed Company Profile

ResMed Inc NYSE: RMD develops, manufactures and distributes medical equipment and digital health solutions for sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions. Its products include continuous positive airway pressure (CPAP), bilevel and other noninvasive ventilation devices, as well as masks, humidifiers, accessories and diagnostic equipment.

The company also provides cloud-connected software and digital health services that support patient monitoring, therapy management and communication among patients, clinicians and care providers.

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