ResMed (NYSE:RMD) Sets New 12-Month High - Here's Why

ResMed Inc. (NYSE:RMD - Get Free Report)'s share price hit a new 52-week high on Tuesday . The company traded as high as $267.99 and last traded at $265.86, with a volume of 368506 shares. The stock had previously closed at $261.07.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Mizuho increased their price target on ResMed from $250.00 to $270.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. KeyCorp set a $274.00 price objective on ResMed in a research note on Thursday, April 24th. 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. Royal Bank Of Canada raised ResMed from a "sector perform" rating to an "outperform" rating and lifted their price target for the stock from $255.00 to $294.00 in a research note on Tuesday, July 15th. Finally, Wall Street Zen downgraded shares of ResMed from a "buy" rating to a "hold" rating in a research note on Saturday, May 24th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $263.00.

ResMed Stock Up 2.6%

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 50-day simple moving average of $251.53 and a two-hundred day simple moving average of $237.65. The firm has a market cap of $39.28 billion, a PE ratio of 30.07, a P/E/G ratio of 1.61 and a beta of 0.77.

ResMed (NYSE:RMD - Get Free Report) last issued its earnings results on Wednesday, April 23rd. The medical equipment provider reported $2.37 EPS for the quarter, topping the consensus estimate of $2.36 by $0.01. The company had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.28 billion. ResMed had a net margin of 26.15% and a return on equity of 25.67%. The firm's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the previous year, the firm earned $2.13 earnings per share. Analysts expect that ResMed Inc. will post 9.47 earnings per share for the current year.

ResMed Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 12th. Stockholders of record on Thursday, May 8th were given a $0.53 dividend. The ex-dividend date of this dividend was Thursday, May 8th. This represents a $2.12 annualized dividend and a dividend yield of 0.79%. ResMed's payout ratio is 23.79%.

Insider Transactions at ResMed

In related news, CEO Michael J. Farrell sold 8,009 shares of the business's stock in a transaction 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 owned 455,503 shares in the company, valued at $116,936,730.16. The trade was a 1.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Peter C. Farrell sold 945 shares of the firm's stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total value of $241,438.05. Following the transaction, the director owned 68,273 shares in the company, valued at approximately $17,443,068.77. This represents a 1.37% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 29,013 shares of company stock valued at $7,238,913. 0.71% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ResMed

Institutional investors and hedge funds have recently made changes to their positions in the stock. GAMMA Investing LLC grew its stake in ResMed by 23,982.6% in the 1st quarter. GAMMA Investing LLC now owns 733,556 shares of the medical equipment provider's stock valued at $164,207,000 after acquiring an additional 730,510 shares during the period. Invesco Ltd. raised its holdings in shares of ResMed by 32.2% during the 4th quarter. Invesco Ltd. now owns 2,325,009 shares of the medical equipment provider's stock worth $531,706,000 after acquiring an additional 566,046 shares during the period. OVERSEA CHINESE BANKING Corp Ltd grew its holdings in shares of ResMed by 1,168.5% in the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 590,895 shares of the medical equipment provider's stock valued at $132,272,000 after purchasing an additional 544,311 shares during the period. Norges Bank acquired a new stake in shares of ResMed during the 4th quarter worth approximately $118,605,000. Finally, Captrust Financial Advisors increased its stake in ResMed by 813.4% during the fourth quarter. Captrust Financial Advisors now owns 443,340 shares of the medical equipment provider's stock worth $101,387,000 after acquiring an additional 394,803 shares during the last quarter. 54.98% of the stock is currently owned by institutional investors and hedge funds.

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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