ResMed Inc. (NYSE:RMD) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• ResMed Inc. has received an average analyst rating of "Moderate Buy" from seventeen research firms, with a consensus price target of approximately $278.36.
• The company recently increased its quarterly dividend from $0.53 to $0.60, signaling a commitment to returning value to shareholders.
• In the last 90 days, insiders sold a total of 19,588 shares, indicating potential changes in sentiment from company leadership.

ResMed Inc. (NYSE:RMD - Get Free Report) has been assigned an average rating of "Moderate Buy" from the seventeen research firms that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, three have given a hold rating, eleven have assigned a buy rating and two have given a strong buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $278.3636.

A number of equities analysts have commented on the stock. Wall Street Zen lowered shares of ResMed from a "buy" rating to a "hold" rating in a report on Sunday, August 10th. Piper Sandler boosted their price objective on shares of ResMed from $248.00 to $270.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. Morgan Stanley set a $286.00 price objective on shares of ResMed and gave the stock an "overweight" rating in a report on Tuesday, May 20th. Stifel Nicolaus boosted their price objective on shares of ResMed from $240.00 to $270.00 and gave the stock a "hold" rating in a report on Friday, August 1st. Finally, Mizuho boosted their price objective on shares of ResMed from $270.00 to $290.00 and gave the stock an "outperform" rating in a report on Friday, August 1st.

Insider Transactions at ResMed

In other news, Director Peter C. Farrell sold 945 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total value of $241,438.05. Following the completion of the sale, the director owned 68,273 shares of the company's stock, valued at approximately $17,443,068.77. The trade was a 1.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John Hernandez sold 2,575 shares of the business's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $287.10, for a total transaction of $739,282.50. Following the completion of the sale, the director directly owned 4,045 shares of the company's stock, valued at $1,161,319.50. The trade was a 38.90% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 19,588 shares of company stock valued at $5,289,241. Insiders own 0.71% of the company's stock.

Institutional Investors Weigh In On ResMed

Several hedge funds and other institutional investors have recently modified their holdings of RMD. Janus Henderson Group PLC grew its position in shares of ResMed by 4.0% during the 4th quarter. Janus Henderson Group PLC now owns 16,807 shares of the medical equipment provider's stock valued at $3,848,000 after buying an additional 647 shares during the last quarter. Nomura Holdings Inc. bought a new stake in shares of ResMed during the 4th quarter valued at about $1,107,000. ProShare Advisors LLC grew its position in shares of ResMed by 10.0% during the 4th quarter. ProShare Advisors LLC now owns 26,631 shares of the medical equipment provider's stock valued at $6,090,000 after buying an additional 2,410 shares during the last quarter. Rafferty Asset Management LLC grew its position in shares of ResMed by 4.3% during the 4th quarter. Rafferty Asset Management LLC now owns 16,650 shares of the medical equipment provider's stock valued at $3,808,000 after buying an additional 693 shares during the last quarter. Finally, Royal Bank of Canada grew its position in shares of ResMed by 9.5% during the 4th quarter. Royal Bank of Canada now owns 285,051 shares of the medical equipment provider's stock valued at $65,189,000 after buying an additional 24,621 shares during the last quarter. Institutional investors own 54.98% of the company's stock.

ResMed Stock Performance

NYSE:RMD opened at $271.39 on Tuesday. The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $39.73 billion, a price-to-earnings ratio of 28.54, a PEG ratio of 1.80 and a beta of 0.85. The firm's fifty day simple moving average is $274.65 and its 200 day simple moving average is $249.25. ResMed has a twelve month low of $199.92 and a twelve month high of $293.81.

ResMed (NYSE:RMD - Get Free Report) last posted its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share for the quarter, beating the consensus estimate of $2.47 by $0.08. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The business's quarterly revenue was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.08 EPS. As a group, equities research analysts expect that ResMed will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be given a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 14th. This is an increase from ResMed's previous quarterly dividend of $0.53. ResMed's payout ratio is presently 25.24%.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company 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 ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.

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