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

Key Points

• ResMed Inc. (NYSE:RMD) has received a consensus rating of "Moderate Buy" from analysts, with 10 buy recommendations and an average price target of $294.20.
• The company recently reported a 10.2% year-over-year revenue increase and earnings per share of $2.55, beating estimates and indicating strong profitability.
• ResMed also raised its quarterly dividend to $0.60 per share, reflecting a commitment to returning value to shareholders, with a current dividend yield of 0.9%.

Shares of ResMed Inc. (NYSE:RMD - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the fifteen ratings firms that are currently covering the firm, Marketbeat reports. Three analysts have rated the stock with a hold recommendation, ten have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $294.20.

RMD has been the subject of several research analyst reports. Piper Sandler boosted their target price on shares of ResMed from $248.00 to $270.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. CLSA raised shares of ResMed from a "hold" rating to an "outperform" rating in a research report on Tuesday, September 2nd. Weiss Ratings reissued a "buy (b-)" rating on shares of ResMed in a research report on Wednesday. William Blair raised shares of ResMed to a "strong-buy" rating in a research report on Friday, August 1st. Finally, KeyCorp boosted their price objective on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a research report on Friday, August 1st.

ResMed Stock Performance

Shares of RMD stock opened at $271.96 on Friday. The company's fifty day moving average price is $278.51 and its two-hundred day moving average price is $255.46. The firm has a market capitalization of $39.69 billion, a P/E ratio of 28.60, a P/E/G ratio of 1.87 and a beta of 0.83. ResMed has a 12 month low of $199.92 and a 12 month high of $293.81. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53.

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

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 18th. Investors of record on Thursday, August 14th were given a dividend of $0.60 per share. The ex-dividend date of this dividend was Thursday, August 14th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from ResMed's previous quarterly dividend of $0.53. ResMed's payout ratio is currently 25.24%.

Insider Activity at ResMed

In related news, General Counsel Michael J. Rider sold 100 shares of the business's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $274.36, for a total transaction of $27,436.00. Following the completion of the sale, the general counsel owned 11,327 shares of the company's stock, valued at $3,107,675.72. This represents a 0.88% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of the business's stock in a transaction dated Tuesday, October 7th. The shares were sold at an average price of $282.85, for a total transaction of $2,265,345.65. Following the sale, the chief executive officer directly owned 467,792 shares of the company's stock, valued at approximately $132,314,967.20. This represents a 1.68% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 18,743 shares of company stock valued at $5,284,514 in the last quarter. Insiders own 0.71% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC lifted its stake in shares of ResMed by 7.6% in the 1st quarter. GAMMA Investing LLC now owns 3,277 shares of the medical equipment provider's stock worth $734,000 after acquiring an additional 231 shares during the period. CX Institutional lifted its stake in shares of ResMed by 6.8% in the 1st quarter. CX Institutional now owns 1,530 shares of the medical equipment provider's stock worth $342,000 after acquiring an additional 97 shares during the period. Simon Quick Advisors LLC lifted its stake in shares of ResMed by 18.3% in the 1st quarter. Simon Quick Advisors LLC now owns 1,951 shares of the medical equipment provider's stock worth $437,000 after acquiring an additional 302 shares during the period. Birch Capital Management LLC lifted its stake in shares of ResMed by 3.5% in the 1st quarter. Birch Capital Management LLC now owns 36,783 shares of the medical equipment provider's stock worth $8,234,000 after acquiring an additional 1,240 shares during the period. Finally, NorthCrest Asset Manangement LLC lifted its stake in shares of ResMed by 3.0% in the 1st quarter. NorthCrest Asset Manangement LLC now owns 54,608 shares of the medical equipment provider's stock worth $12,224,000 after acquiring an additional 1,575 shares during the period. Institutional investors own 54.98% of the company's stock.

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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