ResMed (NYSE:RMD) Given New $225.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo lowered its price target on ResMed to $225 from $227 while keeping an equal weight rating, implying only modest upside from the prior close.
• Other analysts remain mixed but generally constructive: ResMed’s consensus rating is Moderate Buy, and the average price target is $270.64.
• ResMed recently reported better-than-expected quarterly results, with EPS of $2.86 and revenue of $1.43 billion, while the company also has strong liquidity and low leverage.

ResMed (NYSE:RMD - Get Free Report) had its target price lowered by equities researchers at Wells Fargo & Company from $227.00 to $225.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the medical equipment provider's stock. Wells Fargo & Company's target price would indicate a potential upside of 2.45% from the company's previous close.

A number of other brokerages also recently commented on RMD. Morgan Stanley reaffirmed an "equal weight" rating and issued a $230.00 price objective (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Robert W. Baird set a $225.00 price target on ResMed in a research note on Friday, May 1st. JPMorgan Chase & Co. assumed coverage on ResMed in a report on Wednesday, April 15th. They issued an "overweight" rating for the company. Weiss Ratings lowered shares of ResMed from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 22nd. Finally, The Goldman Sachs Group reissued a "buy" rating on shares of ResMed in a research report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, ResMed currently has an average rating of "Moderate Buy" and a consensus target price of $270.64.

ResMed Stock Performance

Shares of RMD opened at $219.62 on Wednesday. ResMed has a 12-month low of $180.26 and a 12-month high of $293.81. The stock has a market cap of $31.86 billion, a P/E ratio of 21.18, a PEG ratio of 1.28 and a beta of 0.78. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06. The company has a 50-day moving average of $201.12 and a two-hundred day moving average of $228.95.

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

Insider Activity

In related news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $193.96, for a total transaction of $968,054.36. Following the completion of the sale, the chief executive officer owned 466,256 shares of the company's stock, valued at approximately $90,435,013.76. This represents a 1.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

Several large investors have recently made changes to their positions in RMD. Jones Financial Companies Lllp raised its position in 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 purchasing an additional 994 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in shares of ResMed in the second quarter valued at about $389,000. Brown Advisory Inc. raised its holdings in shares of ResMed by 17.8% during the 2nd quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider's stock valued at $409,000 after buying an additional 240 shares during the period. Cresset Asset Management LLC acquired a new position in ResMed during the 2nd quarter worth approximately $206,000. Finally, Alliancebernstein L.P. boosted its holdings in ResMed by 24.2% in the 2nd quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider's stock worth $73,808,000 after acquiring an additional 55,790 shares during the period. Institutional investors and hedge funds own 54.98% of the company's stock.

Key Stories Impacting ResMed

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed is divesting MatrixCare to concentrate on higher-growth sleep and home-based care opportunities, which could improve long-term growth and capital efficiency. ResMed to sell software business MatrixCare for $490 million
• Positive Sentiment: The $490 million cash proceeds may give ResMed more flexibility to reinvest in product innovation, margin expansion, or other strategic initiatives. Resmed Announces Agreement to Sell MatrixCare Business
• Neutral Sentiment: The sale is expected to close in ResMed’s first fiscal quarter of 2027, so the financial impact will not be immediate and still depends on regulatory approvals. Resmed Divests MatrixCare to Refocus on Core Sleep Care
• Neutral Sentiment: Recent commentary also points to continued analyst optimism and growth expectations, which may be reinforcing the stock’s strength around the news. Will ResMed (RMD) Beat Estimates Again in Its Next Earnings Report?
• Negative Sentiment: Selling MatrixCare also means ResMed is exiting a software line that served more than 15,000 providers, which could be seen as narrowing diversification. ResMed's $490m MatrixCare sale: What it means

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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