ResMed Inc. (NYSE:RMD) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• ResMed received an average analyst rating of “Moderate Buy” from 15 brokerages, with nine buy ratings, one strong buy, and five hold ratings. The average 12-month price target is about $286.18.
• The company recently beat quarterly expectations, reporting $2.86 EPS versus the $2.79 estimate and revenue of $1.43 billion, up 10.8% year over year. Analysts still expect full-year EPS of 11.13.
• ResMed also announced a quarterly dividend of $0.60 per share, or $2.40 annualized, yielding about 1.2%. Meanwhile, insiders sold shares recently, including CEO Michael J. Farrell, while institutional investors increased positions in the stock.

Shares of ResMed Inc. (NYSE:RMD - Get Free Report) have been assigned an average rating of "Moderate Buy" from the fifteen brokerages that are covering the firm, MarketBeat reports. Five research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $286.1818.

Several research firms recently commented on RMD. Citigroup dropped their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a research note on Thursday, April 9th. Robert W. Baird set a $225.00 target price on ResMed in a research report on Friday, May 1st. Wells Fargo & Company dropped their target price on ResMed from $270.00 to $227.00 and set an "equal weight" rating on the stock in a research report on Friday, May 1st. Stifel Nicolaus increased their target price on ResMed from $260.00 to $265.00 and gave the stock a "hold" rating in a research report on Friday, January 30th. Finally, Weiss Ratings downgraded ResMed from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday.

Insider Buying and Selling at ResMed

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $207.82, for a total value of $1,037,229.62. Following the sale, the chief executive officer owned 466,223 shares in the company, valued at approximately $96,890,463.86. This represents a 1.06% 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. In the last 90 days, insiders have sold 18,973 shares of company stock worth $4,386,031. Company insiders own 0.65% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Landscape Capital Management L.L.C. increased its stake in shares of ResMed by 123.2% during the third quarter. Landscape Capital Management L.L.C. now owns 49,017 shares of the medical equipment provider's stock valued at $13,417,000 after purchasing an additional 27,060 shares in the last quarter. Nordea Investment Management AB increased its stake in shares of ResMed by 37.2% during the fourth quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock valued at $262,027,000 after purchasing an additional 294,124 shares in the last quarter. WCM Investment Management LLC bought a new position in shares of ResMed during the third quarter valued at approximately $3,110,000. Russell Investments Group Ltd. increased its stake in shares of ResMed by 20.2% during the third quarter. Russell Investments Group Ltd. now owns 112,755 shares of the medical equipment provider's stock valued at $30,847,000 after purchasing an additional 18,966 shares in the last quarter. Finally, Allianz Asset Management GmbH increased its stake in shares of ResMed by 44.8% during the third quarter. Allianz Asset Management GmbH now owns 357,421 shares of the medical equipment provider's stock valued at $97,837,000 after purchasing an additional 110,647 shares in the last quarter. Institutional investors own 54.98% of the company's stock.

ResMed Price Performance

ResMed stock opened at $208.04 on Friday. ResMed has a 12 month low of $198.61 and a 12 month high of $293.81. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06. The business's 50 day simple moving average is $219.73 and its 200 day simple moving average is $240.92. The company has a market cap of $30.31 billion, a price-to-earnings ratio of 20.06, a PEG ratio of 1.33 and a beta of 0.84.

ResMed (NYSE:RMD - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.79 by $0.07. ResMed had a return on equity of 25.35% and a net margin of 27.44%.The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter in the prior year, the business earned $2.37 earnings per share. ResMed's revenue for the quarter was up 10.8% on a year-over-year basis. Sell-side analysts forecast that ResMed will post 11.13 EPS for the current year.

ResMed Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th will be given a dividend of $0.60 per share. The ex-dividend date is Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. ResMed's dividend payout ratio is currently 23.14%.

ResMed Company Profile

ResMed NYSE: RMD is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed's product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.

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