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

Key Points

• ResMed has a “Moderate Buy” consensus rating from 17 analysts, with an average 12-month price target of about $263.08. Ratings are split between eight holds, eight buys, and one strong buy.
• The company’s latest earnings beat expectations, reporting $2.86 EPS versus the $2.79 estimate, while revenue rose 10.8% year over year to $1.43 billion.
• ResMed also remains active on the strategic and ownership fronts: it recently sold its MatrixCare business to focus more on core sleep and respiratory health, while CEO Michael Farrell sold shares under a pre-arranged 10b5-1 plan.

ResMed Inc. (NYSE:RMD - Get Free Report) has been given an average recommendation of "Moderate Buy" by the seventeen ratings firms that are covering the firm, MarketBeat Ratings reports. Eight investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $263.0833.

A number of equities analysts have issued reports on the company. Royal Bank Of Canada cut their price target on ResMed from $321.00 to $276.00 and set an "outperform" rating for the company in a research note on Wednesday. Citigroup downgraded ResMed from a "buy" rating to a "neutral" rating in a research note on Sunday. JPMorgan Chase & Co. began coverage on ResMed in a report on Wednesday, April 15th. They issued an "overweight" rating on the stock. KeyCorp cut their target price on ResMed from $290.00 to $266.00 and set an "overweight" rating on the stock in a research report on Monday, June 22nd. Finally, Jefferies Financial Group decreased their price target on ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a report on Friday.

Insider Activity at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total value of $1,090,783.05. Following the completion of the sale, the chief executive officer owned 466,223 shares in the company, valued at $101,893,036.65. This represents a 1.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 14,973 shares of company stock valued at $3,096,067 in the last three months. Corporate insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

Several institutional investors and hedge funds have recently added to or reduced their stakes in RMD. Jones Financial Companies Lllp grew its holdings in shares of ResMed by 52.6% in the first quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider's stock valued at $645,000 after acquiring an additional 994 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in ResMed during the second quarter worth $389,000. Brown Advisory Inc. lifted its holdings in ResMed by 17.8% during the second quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider's stock worth $409,000 after acquiring an additional 240 shares during the period. Cresset Asset Management LLC purchased a new position in ResMed in the second quarter worth $206,000. Finally, Alliancebernstein L.P. boosted its position in ResMed by 24.2% in the second quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider's stock worth $73,808,000 after purchasing an additional 55,790 shares during the last quarter. Hedge funds and other institutional investors own 54.98% of the company's stock.

ResMed Stock Up 0.1%

Shares of NYSE RMD opened at $204.17 on Monday. The stock has a market capitalization of $29.62 billion, a P/E ratio of 19.69, a P/E/G ratio of 1.22 and a beta of 0.78. The company has a 50-day moving average price of $200.46 and a 200-day moving average price of $228.14. ResMed has a 1 year low of $180.26 and a 1 year high of $293.81. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33.

ResMed (NYSE:RMD - Get Free Report) last posted its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same period in the previous year, the firm posted $2.37 earnings per share. The firm's revenue for the quarter was up 10.8% on a year-over-year basis. On average, equities research analysts forecast that ResMed will post 11.13 EPS for the current fiscal year.

ResMed Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, May 14th were issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Thursday, May 14th. ResMed's payout ratio is currently 23.14%.

ResMed News Summary

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed’s sale of MatrixCare should simplify the portfolio, increase focus on higher-growth core franchises, and potentially improve capital allocation. Resmed Divests MatrixCare Business to Sharpen Focus on Connected Care
• Positive Sentiment: Analyst commentary has described the transaction as a “portfolio reset,” which suggests the market may view the move as strategically constructive for long-term growth. ResMed (RMD) Sells MatrixCare To Refocus On Sleep And Respiratory Health
• Positive Sentiment: Brokerage coverage remained supportive, with multiple firms reiterating buy-type ratings, reinforcing confidence in ResMed’s core business despite the divestiture. Resmed Inc CHESS Depositary Interests ... Gets a Buy from Morgans
• Neutral Sentiment: Unusually large put-option activity suggests some traders are hedging or betting on downside, but it does not confirm a change in the company’s fundamentals.
• Neutral Sentiment: CEO Michael Farrell’s recent stock sale was made under a pre-arranged 10b5-1 plan, making it more routine than a clear bearish signal, though insider selling can still weigh on sentiment. Insider Selling: ResMed NYSE: RMD CEO Sells $1,090,783.05 in Stock

About ResMed

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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