ResMed Inc. (NYSE:RMD) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• ResMed Inc. has received a consensus recommendation of "Moderate Buy" from 16 research firms, with ten analysts rating it as a buy and two as strong buy.
• The company recently announced a quarterly dividend increase to $0.60 per share, up from the previous $0.53, with a yield of 0.8%.
• ResMed's recent earnings report showed an EPS of $2.55, exceeding analysts' expectations and reflecting a 10.2% year-over-year revenue growth.

ResMed Inc. (NYSE:RMD - Get Free Report) has earned an average recommendation of "Moderate Buy" from the sixteen research firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, ten have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $274.8333.

RMD has been the topic of a number of research reports. Mizuho boosted their target price on shares of ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a report on Friday, August 1st. UBS Group boosted their target price on shares of ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a report on Friday, August 1st. Stifel Nicolaus boosted their target price on shares of ResMed from $240.00 to $270.00 and gave the company a "hold" rating in a report on Friday, August 1st. KeyCorp boosted their target price on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Finally, Morgan Stanley set a $286.00 target price on shares of ResMed and gave the company an "overweight" rating in a report on Tuesday, May 20th.

ResMed Stock Performance

NYSE:RMD opened at $288.13 on Friday. The stock has a market cap of $42.19 billion, a P/E ratio of 30.30, a price-to-earnings-growth ratio of 1.94 and a beta of 0.77. The firm's fifty day simple moving average is $267.02 and its 200 day simple moving average is $244.16. ResMed has a twelve month low of $199.92 and a twelve month high of $293.08. The company has a quick ratio of 2.53, a current ratio of 3.44 and a debt-to-equity ratio of 0.11.

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

ResMed Increases Dividend

The business also recently declared 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. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $2.40 annualized dividend and a dividend yield of 0.8%. This is a boost from ResMed's previous quarterly dividend of $0.53. ResMed's payout ratio is presently 25.24%.

Insider Transactions at ResMed

In other news, Director John Hernandez sold 2,575 shares of ResMed stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $287.10, for a total value of $739,282.50. Following the completion of the transaction, the director 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Peter C. Farrell sold 945 shares of ResMed stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $255.49, for a total value of $241,438.05. Following the completion of the transaction, the director directly owned 68,273 shares of the company's stock, valued at approximately $17,443,068.77. This represents a 1.37% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 27,638 shares of company stock valued at $7,311,177 in the last quarter. 0.71% of the stock is owned by insiders.

Hedge Funds Weigh In On ResMed

Hedge funds have recently bought and sold shares of the business. ICW Investment Advisors LLC increased its position in shares of ResMed by 0.4% during the 1st quarter. ICW Investment Advisors LLC now owns 11,394 shares of the medical equipment provider's stock valued at $2,551,000 after purchasing an additional 41 shares during the last quarter. Johnson Investment Counsel Inc. grew its stake in shares of ResMed by 2.8% during the 2nd quarter. Johnson Investment Counsel Inc. now owns 1,665 shares of the medical equipment provider's stock valued at $430,000 after acquiring an additional 45 shares during the period. Quadcap Wealth Management LLC grew its stake in shares of ResMed by 2.5% during the 2nd quarter. Quadcap Wealth Management LLC now owns 1,880 shares of the medical equipment provider's stock valued at $485,000 after acquiring an additional 45 shares during the period. Smartleaf Asset Management LLC grew its stake in shares of ResMed by 3.9% during the 1st quarter. Smartleaf Asset Management LLC now owns 1,222 shares of the medical equipment provider's stock valued at $269,000 after acquiring an additional 46 shares during the period. Finally, E Fund Management Co. Ltd. grew its stake in shares of ResMed by 2.8% during the 1st quarter. E Fund Management Co. Ltd. now owns 1,719 shares of the medical equipment provider's stock valued at $385,000 after acquiring an additional 47 shares during the period. Hedge funds and other 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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