ResMed (NYSE:RMD) Stock Price Breaks Below Fifty Day Moving Average - What's Next?

Key Points

• ResMed shares fell below their 50-day moving average of $231.87, trading as low as $228.33, despite remaining above the 200-day average of $225.43.
• Quarterly results beat expectations: Fiscal Q1 2027 adjusted EPS reached $2.91 versus the $2.67 consensus, while revenue rose 5.9% year over year to $1.41 billion. Improved demand, productivity and gross margins supported the performance.
• Analyst sentiment is mixed. Several firms raised price targets, including RBC to $288, but ResMed kept its full-year guidance unchanged; the overall consensus rating remains “Hold” with a $253.69 price target.

ResMed Inc. (NYSE:RMD - Get Free Report)'s share price passed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $231.87 and traded as low as $228.33. ResMed shares last traded at $230.7630, with a volume of 3,445,161 shares.

Key ResMed News

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: Quarterly results exceeded expectations. ResMed reported fiscal Q1 2027 adjusted earnings of $2.91 per share versus the $2.67 consensus estimate, while revenue rose 5.9% year over year to $1.41 billion, ahead of the $1.39 billion forecast. ResMed fiscal first-quarter results
• Positive Sentiment: Profitability and demand trends improved. Sustained demand for sleep devices, productivity gains and gross-margin expansion supported the earnings beat. EPS increased from $2.55 in the year-ago quarter, and ResMed reported a 26.94% net margin. ResMed earnings and margin growth
• Positive Sentiment: Analysts raised price targets. RBC increased its target from $262 to $288 and assigned an “outperform” rating. KeyCorp raised its target from $267 to $277 with an “overweight” rating, while Wells Fargo lifted its target from $215 to $250 and maintained “equal weight.” Citigroup raised its target from $240 to $270 but retained a “neutral” rating. Analyst target changes
• Neutral Sentiment: ResMed declared a quarterly dividend of $0.66 per share, or $2.64 annualized, representing an approximately 1.1% yield. The dividend supports shareholder returns but is unlikely to be the primary near-term stock catalyst.
• Negative Sentiment: Full-year guidance was unchanged. The lack of an outlook increase may have disappointed investors who expected the earnings beat and improving margins to result in raised expectations. The neutral ratings from Citigroup and Wells Fargo may also limit the impact of the higher price targets. ResMed maintains prior guidance

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on RMD. Citigroup raised their target price on shares of ResMed from $240.00 to $270.00 and gave the company a "neutral" rating in a research note on Friday. KeyCorp boosted their price target on ResMed from $267.00 to $277.00 and gave the stock an "overweight" rating in a research report on Friday. Jefferies Financial Group dropped their price objective on ResMed from $240.00 to $225.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. Royal Bank Of Canada upped their price objective on ResMed from $262.00 to $288.00 and gave the company an "outperform" rating in a research note on Friday. Finally, Robert W. Baird set a $213.00 price objective on ResMed in a research report on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, ResMed currently has an average rating of "Hold" and a consensus price target of $253.69.

ResMed Price Performance

The company's 50-day moving average price is $231.87 and its two-hundred day moving average price is $225.43. 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 company has a market capitalization of $32.45 billion, a P/E ratio of 21.02, a price-to-earnings-growth ratio of 1.55 and a beta of 0.75.

ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, October 29th. The medical equipment provider reported $2.91 EPS for the quarter, topping the consensus estimate of $2.67 by $0.24. ResMed had a net margin of 27.79% and a return on equity of 25.90%. The business had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the previous year, the firm posted $2.55 EPS. ResMed's revenue was up 5.9% compared to the same quarter last year. As a group, sell-side analysts expect that ResMed Inc. will post 12.11 EPS for the current year.

ResMed Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders 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 annualized dividend and a yield of 1.1%. ResMed's dividend payout ratio (DPR) is 25.31%.

Insider Transactions at ResMed

In related news, Director Peter C. Farrell sold 970 shares of ResMed stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total transaction of $227,688.10. Following the completion of the sale, the director directly owned 51,803 shares of the company's stock, valued at approximately $12,159,718.19. This trade represents a 1.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Michael J. Rider sold 400 shares of ResMed stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $255.00, for a total value of $102,000.00. Following the sale, the general counsel directly owned 12,318 shares of the company's stock, valued at approximately $3,141,090. The trade was a 3.15% 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 a total of 24,343 shares of company stock worth $5,396,098 over the last quarter. Company insiders own 0.58% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in RMD. American Capital Management Inc. bought a new stake in shares of ResMed during the second quarter worth $44,522,000. Hsbc Holdings PLC lifted its stake in shares of ResMed by 17.6% in the 4th quarter. Hsbc Holdings PLC now owns 328,785 shares of the medical equipment provider's stock valued at $79,321,000 after acquiring an additional 49,253 shares during the last quarter. BlackRock Inc. bought a new position in shares of ResMed in the 2nd quarter valued at $2,400,375,000. Polymer Capital Management HK LTD acquired a new stake in shares of ResMed during the 2nd quarter valued at $972,000. Finally, United Capital Financial Advisors LLC acquired a new stake in shares of ResMed during the 2nd quarter valued at $1,105,000. Institutional investors own 54.98% of the company's stock.

About ResMed

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.

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