ResMed (NYSE:RMD) Trading 4.5% Higher - Here's What Happened

Key Points

• ResMed shares rose 4.5% to about $233, despite trading volume running 68% below the average session level.
• Analyst sentiment improved, with RBC and KeyCorp raising their price targets to $262 and $267, respectively. However, the overall consensus remains “Hold,” with an average target of $241.69.
• ResMed reported quarterly EPS of $2.95, beating estimates, while revenue increased 8.6% year over year to $1.46 billion. The company also raised its quarterly dividend from $0.60 to $0.66 per share.

ResMed Inc. (NYSE:RMD - Get Free Report) shares traded up 4.5% on Tuesday . The stock traded as high as $233.23 and last traded at $232.9910. Approximately 419,842 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 1,305,453 shares. The stock had previously closed at $222.99.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Royal Bank Of Canada raised shares of ResMed from a "sector perform" rating to an "outperform" rating and lifted their price objective for the company from $244.00 to $262.00 in a report on Tuesday. The Goldman Sachs Group reaffirmed a "buy" rating on shares of ResMed in a research report on Wednesday, July 1st. Rothschild & Co Redburn began coverage on ResMed in a report on Wednesday, August 19th. They issued a "neutral" rating and a $230.00 price target on the stock. Weiss Ratings raised ResMed from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Finally, KeyCorp lifted their target price on ResMed from $255.00 to $267.00 and gave the company an "overweight" rating in a research note on Monday, August 31st. Seven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $241.69.

ResMed Stock Up 4.2%

The company's fifty day simple moving average is $217.48 and its 200-day simple moving average is $216.49. 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 firm has a market capitalization of $33.53 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 1.38 and a beta of 0.77.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, beating the consensus estimate of $2.89 by $0.06. ResMed had a return on equity of 25.58% and a net margin of 26.94%.The firm had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the business posted $2.55 EPS. The business's revenue for the quarter was up 8.6% compared to the same quarter last year. On average, analysts forecast that ResMed Inc. will post 12.02 EPS for the current year.

ResMed Increases Dividend

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

Insider Activity at ResMed

In related news, CEO Michael Farrell sold 4,991 shares of ResMed stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $205.69, for a total value of $1,026,598.79. Following the completion of the sale, the chief executive officer directly owned 466,256 shares in the company, valued at $95,904,196.64. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter Farrell sold 8,000 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director directly owned 52,773 shares in the company, valued at approximately $11,873,925. This represents a 13.16% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 23,943 shares of company stock valued at $5,255,268 over the last ninety days. 0.65% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ResMed

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in shares of ResMed during the second quarter worth $2,400,375,000. Bank of New York Mellon Corp raised its holdings in shares of ResMed by 7.4% in the 4th quarter. Bank of New York Mellon Corp now owns 4,890,654 shares of the medical equipment provider's stock valued at $1,178,012,000 after buying an additional 337,738 shares during the period. Geode Capital Management LLC lifted its stake in ResMed by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider's stock worth $1,032,877,000 after acquiring an additional 51,218 shares in the last quarter. First Trust Advisors LP lifted its stake in ResMed by 1.3% during the 1st quarter. First Trust Advisors LP now owns 1,537,825 shares of the medical equipment provider's stock worth $345,211,000 after acquiring an additional 20,233 shares in the last quarter. Finally, Deutsche Bank AG boosted its holdings in ResMed by 126.0% during the 4th quarter. Deutsche Bank AG now owns 1,413,477 shares of the medical equipment provider's stock valued at $340,464,000 after acquiring an additional 787,949 shares during the period. 54.98% of the stock is owned by institutional investors and hedge funds.

About ResMed

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.

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