ResMed (NYSE:RMD) Reaches New 1-Year High After Analyst Upgrade

Key Points

• ResMed Inc. (NYSE:RMD) has reached a new 52-week high of $284.40 following an upgrade from Wall Street Zen from a hold to a buy rating.
• Several analysts have increased their price targets for ResMed, with UBS Group raising its target from $285.00 to $325.00, while consensus expectations for the company's earnings per share in the current fiscal year stand at $9.47.
• ResMed also announced a quarterly dividend increase from $0.53 to $0.60, representing an annualized dividend of $2.40 and a yield of 0.8%.

ResMed Inc. (NYSE:RMD - Get Free Report) reached a new 52-week high during mid-day trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $281.90 and last traded at $284.40, with a volume of 1796962 shares. The stock had previously closed at $271.94.

A number of other equities research analysts have also weighed in on RMD. UBS Group lifted their price objective on ResMed from $285.00 to $325.00 and gave the company a "buy" rating in a report on Friday. Stifel Nicolaus boosted their price target on ResMed from $240.00 to $270.00 and gave the stock a "hold" rating in a research note on Friday. Morgan Stanley set a $286.00 price target on ResMed and gave the stock an "overweight" rating in a research note on Tuesday, May 20th. Piper Sandler boosted their price target on ResMed from $248.00 to $270.00 and gave the stock a "neutral" rating in a research note on Friday. Finally, KeyCorp boosted their price target on ResMed from $274.00 to $298.00 and gave the stock an "overweight" rating in a research note on Friday. One research analyst has rated the stock with a sell rating, three have issued a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $274.83.

Insider Buying and Selling

In related news, CEO Michael J. Farrell sold 8,009 shares of ResMed stock in a transaction that occurred on Monday, July 7th. The stock was sold at an average price of $256.72, for a total transaction of $2,056,070.48. Following the completion of the transaction, the chief executive officer directly owned 455,503 shares in the company, valued at $116,936,730.16. The trade was a 1.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Witte Jan De sold 2,000 shares of ResMed stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $243.47, for a total value of $486,940.00. Following the transaction, the director owned 5,806 shares of the company's stock, valued at $1,413,586.82. This represents a 25.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 29,013 shares of company stock worth $7,238,913 in the last ninety days. Insiders own 0.71% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in ResMed by 1.8% during the first quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider's stock worth $4,139,815,000 after acquiring an additional 320,240 shares during the last quarter. Invesco Ltd. boosted its position in ResMed by 32.2% in the 4th quarter. Invesco Ltd. now owns 2,325,009 shares of the medical equipment provider's stock valued at $531,706,000 after buying an additional 566,046 shares during the last quarter. Northern Trust Corp lifted its position in shares of ResMed by 2.5% during the first quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider's stock worth $390,516,000 after purchasing an additional 41,951 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of ResMed by 4.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider's stock worth $223,431,000 after purchasing an additional 41,108 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of ResMed by 2.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 977,401 shares of the medical equipment provider's stock worth $218,791,000 after purchasing an additional 22,789 shares during the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed Stock Up 3.1%

The firm has a market cap of $42.23 billion, a P/E ratio of 30.04, a PEG ratio of 1.72 and a beta of 0.77. The firm's 50-day moving average price is $256.59 and its 200 day moving average price is $240.39. 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 announced its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating the consensus estimate of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same quarter last year, the business earned $2.08 earnings per share. ResMed's revenue was up 10.2% compared to the same quarter last year. On average, equities research analysts expect that ResMed Inc. will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th will be paid a $0.60 dividend. The ex-dividend date is Wednesday, August 13th. This is an increase from ResMed's previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a dividend yield of 0.8%. ResMed's dividend payout ratio (DPR) is 22.29%.

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.

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