ResMed Inc. (NYSE:RMD) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts give ResMed an average recommendation of Moderate Buy from 14 firms (8 buys, 5 holds, 1 strong buy) with a 12‑month average price target of $299.27 versus a recent share price near $224, implying notable upside.
• Company insiders have been selling recently — CEO Michael J. Farrell sold 4,991 shares at $251.03 and a director sold 2,000 shares at $225; insiders sold 23,023 shares (~$5.84M) in the last quarter and now own 0.65% of the stock.
• ResMed topped quarterly estimates with EPS of $2.81 (vs. $2.68 est.) and revenue of $1.42B (vs. $1.40B est., +11% YoY), and pays a quarterly dividend of $0.60 ($2.40 annualized, ~1.1% yield).

Shares of ResMed Inc. (NYSE:RMD - Get Free Report) have been given an average recommendation of "Moderate Buy" by the fourteen ratings firms that are presently covering the firm, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $299.2727.

Several equities research analysts recently commented on RMD shares. KeyCorp reiterated an "overweight" rating and set a $302.00 price target on shares of ResMed in a research note on Friday, January 30th. Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Stifel Nicolaus raised their price objective on ResMed from $260.00 to $265.00 and gave the stock a "hold" rating in a report on Friday, January 30th. Robert W. Baird set a $281.00 target price on ResMed in a research report on Friday, January 30th. Finally, UBS Group reissued a "buy" rating and issued a $345.00 target price on shares of ResMed in a report on Friday, December 12th.

Insider Buying and Selling

In other news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $251.03, for a total value of $1,252,890.73. Following the completion of the sale, the chief executive officer directly owned 466,223 shares of the company's stock, valued at approximately $117,035,959.69. This represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Peter C. Farrell sold 2,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $225.00, for a total transaction of $450,000.00. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 23,023 shares of company stock valued at $5,843,111. 0.65% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Landscape Capital Management L.L.C. raised 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 worth $13,417,000 after purchasing an additional 27,060 shares during the last quarter. Nordea Investment Management AB grew its position in ResMed by 37.2% in the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider's stock valued at $262,027,000 after buying an additional 294,124 shares during the last quarter. Allianz Asset Management GmbH grew its position in ResMed by 44.8% in the 3rd quarter. Allianz Asset Management GmbH now owns 357,421 shares of the medical equipment provider's stock valued at $97,837,000 after buying an additional 110,647 shares during the last quarter. WCM Investment Management LLC acquired a new position in ResMed in the 3rd quarter valued at $3,110,000. Finally, Russell Investments Group Ltd. raised its position in ResMed by 20.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 112,755 shares of the medical equipment provider's stock worth $30,847,000 after buying an additional 18,966 shares during the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Stock Performance

Shares of RMD opened at $224.23 on Friday. The company has a market capitalization of $32.67 billion, a price-to-earnings ratio of 22.18, a price-to-earnings-growth ratio of 1.49 and a beta of 0.93. ResMed has a 52-week low of $199.92 and a 52-week high of $293.81. 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 50 day moving average price of $246.52 and a 200 day moving average price of $253.41.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings data on Friday, January 30th. The medical equipment provider reported $2.81 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $0.13. ResMed had a net margin of 27.53% and a return on equity of 25.20%. The company had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $1.40 billion. During the same quarter last year, the company earned $2.43 earnings per share. The firm's revenue for the quarter was up 11.0% on a year-over-year basis. Research analysts predict that ResMed will post 9.47 EPS for the current fiscal year.

ResMed Announces Dividend

The company also recently declared 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. The ex-dividend date of this dividend was Thursday, February 12th. This represents a $2.40 annualized dividend and a yield of 1.1%. ResMed's payout ratio is 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.