ResMed (NYSE:RMD) Now Covered by JPMorgan Chase & Co.

Key Points

• JPMorgan Chase initiated coverage on ResMed with an "overweight" rating, indicating fresh analyst support for the stock.
• ResMed beat quarterly expectations with EPS of $2.81 versus $2.68 and revenue of $1.42B (up 11% year-over-year), reporting strong profitability (ROE 25.2%, net margin 27.5%).
• Analysts' consensus is a Moderate Buy with an average price target of $295.17, compared with a recent share price near $229, implying notable upside.

JPMorgan Chase & Co. initiated coverage on shares of ResMed (NYSE:RMD - Get Free Report) in a report issued on Wednesday, MarketBeat reports. The firm set an "overweight" rating on the medical equipment provider's stock.

RMD has been the topic of a number of other research reports. Piper Sandler boosted their price objective on ResMed from $270.00 to $275.00 and gave the stock a "neutral" rating in a research note on Friday, January 30th. Robert W. Baird set a $281.00 price target on ResMed in a research note on Friday, January 30th. Stifel Nicolaus upped 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. KeyCorp reaffirmed an "overweight" rating and set a $302.00 price target on shares of ResMed in a research note on Friday, January 30th. Finally, Royal Bank Of Canada upped their price target on ResMed from $311.00 to $314.00 and gave the company an "outperform" rating in a research note on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $295.17.

ResMed Price Performance

NYSE:RMD traded down $1.54 during trading hours on Wednesday, reaching $229.15. The company had a trading volume of 376,413 shares, compared to its average volume of 1,058,865. The stock has a 50-day moving average of $242.69 and a two-hundred day moving average of $250.96. ResMed has a one year low of $202.00 and a one year high of $293.81. The firm has a market capitalization of $33.38 billion, a PE ratio of 22.65, a PEG ratio of 1.53 and a beta of 0.93. The company has a quick ratio of 2.32, a current ratio of 3.06 and a debt-to-equity ratio of 0.06.

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 for the quarter, beating analysts' consensus estimates of $2.68 by $0.13. The firm had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $1.40 billion. ResMed had a return on equity of 25.20% and a net margin of 27.53%.The business's revenue was up 11.0% compared to the same quarter last year. During the same period in the prior year, the business posted $2.43 earnings per share. Analysts forecast that ResMed will post 9.47 earnings per share for the current year.

Insider Activity

In related news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction dated Wednesday, April 1st. The stock was 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 available through this hyperlink. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $225.50, for a total value of $1,125,470.50. Following the transaction, the chief executive officer owned 466,223 shares of the company's stock, valued at approximately $105,133,286.50. The trade was 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 sold 21,023 shares of company stock valued at $5,230,857 over the last 90 days. Corporate insiders own 0.65% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of RMD. Vanguard Group Inc. lifted its position in shares of ResMed by 1.6% in the third quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider's stock valued at $5,211,940,000 after buying an additional 293,515 shares during the last quarter. State Street Corp lifted its position in shares of ResMed by 1.2% in the fourth quarter. State Street Corp now owns 6,625,408 shares of the medical equipment provider's stock valued at $1,595,862,000 after buying an additional 76,244 shares during the last quarter. Bank of New York Mellon Corp lifted its position in shares of ResMed by 7.4% in the fourth quarter. Bank of New York Mellon Corp now owns 4,890,654 shares of the medical equipment provider's stock valued at $1,178,012,000 after buying an additional 337,738 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of ResMed by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 4,302,906 shares of the medical equipment provider's stock valued at $1,032,877,000 after buying an additional 51,218 shares during the last quarter. Finally, Morgan Stanley lifted its position in shares of ResMed by 25.0% in the fourth quarter. Morgan Stanley now owns 2,891,697 shares of the medical equipment provider's stock valued at $696,523,000 after buying an additional 578,559 shares during the last quarter. 54.98% of the stock is currently owned by institutional investors.

About ResMed

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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