ResMed (NYSE:RMD) Sets New 1-Year High - Should You Buy?

Key Points

• ResMed Inc. reached a new 52-week high, trading at $276.26, marking a significant increase from its previous closing price of $273.50.
• Analysts have set new price targets for ResMed, with JPMorgan and Royal Bank of Canada raising their targets to $290.00 and $294.00 respectively, while the consensus price target is $263.00.
• Insider trading activity shows that directors have recently sold substantial shares of the company, indicating potential changes in insider confidence.

ResMed Inc. (NYSE:RMD - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as $276.18 and last traded at $276.26, with a volume of 155783 shares changing hands. The stock had previously closed at $273.50.

Analysts Set New Price Targets

Several brokerages recently weighed in on RMD. JPMorgan Chase & Co. raised their price target on shares of ResMed from $286.00 to $290.00 and gave the company an "overweight" rating in a research report on Thursday, April 24th. Royal Bank Of Canada raised shares of ResMed from a "sector perform" rating to an "outperform" rating and raised their price target for the company from $255.00 to $294.00 in a report on Tuesday, July 15th. Morgan Stanley set a $286.00 price target on shares of ResMed and gave the stock an "overweight" rating in a research note on Tuesday, May 20th. Wall Street Zen cut shares of ResMed from a "buy" rating to a "hold" rating in a research report on Saturday, May 24th. Finally, Piper Sandler decreased their price target on shares of ResMed from $260.00 to $248.00 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $263.00.

ResMed Stock Up 1.1%

The company has a quick ratio of 2.49, a current ratio of 3.41 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $40.55 billion, a P/E ratio of 31.03, a PEG ratio of 1.71 and a beta of 0.77. The business has a 50-day simple moving average of $254.11 and a two-hundred day simple moving average of $239.16.

Insider Buying and Selling at ResMed

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of the company's stock in a transaction dated Wednesday, May 7th. The stock was sold at an average price of $242.25, for a total value of $484,500.00. Following the sale, the director owned 71,218 shares in the company, valued at approximately $17,252,560.50. The trade was a 2.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Witte Jan De sold 2,000 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $243.47, for a total value of $486,940.00. Following the completion of the transaction, the director directly owned 5,806 shares in the company, 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 a total of 29,013 shares of company stock worth $7,238,913 over the last ninety days. 0.71% of the stock is currently owned by corporate insiders.

Institutional Trading of ResMed

Several institutional investors and hedge funds have recently modified their holdings of RMD. Chevy Chase Trust Holdings LLC raised its position in ResMed by 0.6% during the second quarter. Chevy Chase Trust Holdings LLC now owns 77,518 shares of the medical equipment provider's stock valued at $20,000,000 after purchasing an additional 456 shares in the last quarter. Stratos Wealth Partners LTD. purchased a new position in ResMed during the second quarter valued at $317,000. Angeles Wealth Management LLC raised its stake in ResMed by 10.8% during the second quarter. Angeles Wealth Management LLC now owns 1,310 shares of the medical equipment provider's stock valued at $338,000 after buying an additional 128 shares during the last quarter. Oxbow Advisors LLC lifted its position in ResMed by 116.8% in the 2nd quarter. Oxbow Advisors LLC now owns 27,286 shares of the medical equipment provider's stock valued at $7,040,000 after acquiring an additional 14,701 shares in the last quarter. Finally, Nordea Investment Management AB increased its stake in shares of ResMed by 4.4% in the 2nd quarter. Nordea Investment Management AB now owns 764,243 shares of the medical equipment provider's stock worth $195,883,000 after purchasing an additional 32,025 shares in the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

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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