ResMed (NYSE:RMD) Coverage Initiated by Analysts at Citigroup

Key Points

• Citigroup has initiated coverage on ResMed with a "buy" rating and set a price target of $330.00, indicating a potential upside of 21.36% from its current stock price.
• ResMed reported earnings of $2.55 EPS for the last quarter, surpassing the consensus estimate of $2.47 and achieving a 10.2% year-over-year revenue increase.
• Multiple analysts have expressed positive outlooks on ResMed, with the consensus rating categorized as a "Moderate Buy" and an average target price of $292.00.

Citigroup began coverage on shares of ResMed (NYSE:RMD - Free Report) in a research note released on Thursday morning, Marketbeat.com reports. The brokerage issued a buy rating and a $330.00 price objective on the medical equipment provider's stock.

RMD has been the topic of a number of other research reports. William Blair raised shares of ResMed to a "strong-buy" rating in a research note on Friday, August 1st. UBS Group upped their target price on shares of ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Mizuho increased their price target on shares of ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. CLSA raised shares of ResMed from a "hold" rating to an "outperform" rating in a research note on Tuesday, September 2nd. Finally, KeyCorp raised their price objective on ResMed from $274.00 to $298.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Three equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $292.00.

ResMed Stock Performance

NYSE:RMD traded up $0.81 during midday trading on Thursday, hitting $274.00. The company's stock had a trading volume of 200,315 shares, compared to its average volume of 995,297. The firm has a market cap of $40.12 billion, a P/E ratio of 28.77, a P/E/G ratio of 1.84 and a beta of 0.85. ResMed has a fifty-two week low of $199.92 and a fifty-two week high of $293.81. The firm's 50 day moving average is $275.98 and its 200-day moving average is $250.50. 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 posted its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping the consensus estimate of $2.47 by $0.08. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. ResMed had a return on equity of 25.62% and a net margin of 27.22%.ResMed's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period last year, the company earned $2.08 earnings per share. Equities analysts anticipate that ResMed will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

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

Insider Activity at ResMed

In other ResMed news, 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 transaction of $241,438.05. Following the transaction, the director directly owned 68,273 shares in the company, valued at approximately $17,443,068.77. The trade was a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $279.48, for a total value of $2,238,355.32. Following the sale, the chief executive officer directly owned 455,503 shares of the company's stock, valued at approximately $127,303,978.44. The trade was a 1.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 19,588 shares of company stock valued at $5,289,241 in the last ninety days. Insiders own 0.71% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. WFA of San Diego LLC bought a new position in ResMed during the second quarter worth about $26,000. Global X Japan Co. Ltd. increased its holdings in ResMed by 121.4% in the first quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock worth $28,000 after purchasing an additional 68 shares in the last quarter. Golden State Wealth Management LLC grew its stake in shares of ResMed by 384.8% during the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock worth $36,000 after acquiring an additional 127 shares during the period. Zions Bancorporation National Association UT bought a new position in shares of ResMed in the first quarter worth $45,000. Finally, Groupe la Francaise bought a new stake in shares of ResMed during the 1st quarter worth $45,000. 54.98% of the stock is currently owned by institutional investors.

ResMed Company Profile

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.