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

Key Points

• Fifteen analysts give ResMed an average recommendation of Moderate Buy with a 12‑month consensus price target of about $294.55.
• Insiders have sold 21,023 shares valued at $5.23 million in the last three months — including sales by CEO Michael J. Farrell and Director Peter C. Farrell — leaving insiders with 0.65% ownership.
• ResMed beat quarterly expectations (EPS $2.81 vs. $2.68; revenue $1.42B vs. $1.40B) with revenue up 11% year-over-year; analysts project FY EPS of 11.05 and the stock trades at a PE of ~21.5 with a market cap near $31.65B.

Shares of ResMed Inc. (NYSE:RMD - Get Free Report) have been given an average recommendation of "Moderate Buy" by the fifteen research firms that are presently covering the firm, MarketBeat.com reports. Five research analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokers that have covered the stock in the last year is $294.5455.

Several equities analysts have issued reports on the stock. Royal Bank Of Canada upped their price target on shares of ResMed from $311.00 to $314.00 and gave the company an "outperform" rating in a research report on Friday, January 30th. Evercore set a $255.00 price target on shares of ResMed and gave the company an "outperform" rating in a research report on Monday, April 13th. Stifel Nicolaus increased their price target on ResMed from $260.00 to $265.00 and gave the company a "hold" rating in a research note on Friday, January 30th. Citigroup decreased their price target on ResMed from $345.00 to $340.00 and set a "buy" rating for the company in a research note on Thursday, April 9th. Finally, Piper Sandler increased their price target on ResMed from $270.00 to $275.00 and gave the company a "neutral" rating in a research note on Friday, January 30th.

Insider Buying and Selling

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were 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 Securities & Exchange Commission, which is accessible through this link. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $225.50, for a total transaction of $1,125,470.50. Following the sale, the chief executive officer owned 466,223 shares of the company's stock, valued at approximately $105,133,286.50. This trade represents a 1.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,023 shares of company stock valued at $5,230,857 in the last three months. Insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

Several large investors have recently modified their holdings of the company. Bogart Wealth LLC grew its stake in ResMed by 4.5% during the first quarter. Bogart Wealth LLC now owns 18,824 shares of the medical equipment provider's stock worth $4,226,000 after purchasing an additional 806 shares during the period. V Square Quantitative Management LLC grew its stake in ResMed by 7.7% during the first quarter. V Square Quantitative Management LLC now owns 1,403 shares of the medical equipment provider's stock worth $315,000 after purchasing an additional 100 shares during the period. QRG Capital Management Inc. grew its stake in ResMed by 9.5% during the first quarter. QRG Capital Management Inc. now owns 24,490 shares of the medical equipment provider's stock worth $5,498,000 after purchasing an additional 2,130 shares during the period. Hendershot Investments Inc. grew its stake in ResMed by 2.8% during the first quarter. Hendershot Investments Inc. now owns 56,657 shares of the medical equipment provider's stock worth $12,718,000 after purchasing an additional 1,563 shares during the period. Finally, Oxbow Advisors LLC grew its stake in ResMed by 1.4% during the first quarter. Oxbow Advisors LLC now owns 27,963 shares of the medical equipment provider's stock worth $6,277,000 after purchasing an additional 392 shares during the period. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Price Performance

Shares of RMD opened at $217.23 on Wednesday. ResMed has a 12-month low of $215.30 and a 12-month high of $293.81. The business has a 50-day simple moving average of $235.14 and a two-hundred day simple moving average of $247.17. The company has a quick ratio of 2.32, a current ratio of 3.06 and a debt-to-equity ratio of 0.06. The stock has a market cap of $31.65 billion, a PE ratio of 21.49, a PEG ratio of 1.46 and a beta of 0.93.

ResMed (NYSE:RMD - Get Free Report) last announced its quarterly earnings results on Friday, January 30th. The medical equipment provider reported $2.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.13. ResMed had a net margin of 27.53% and a return on equity of 25.20%. The firm had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.40 billion. During the same period in the prior year, the company posted $2.43 EPS. The company's revenue was up 11.0% on a year-over-year basis. Analysts anticipate that ResMed will post 11.05 earnings per share for the current fiscal year.

ResMed Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 19th. Shareholders of record on Thursday, February 12th were given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Thursday, February 12th. ResMed's dividend payout ratio is currently 23.74%.

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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