Royal Bank Of Canada Forecasts Strong Price Appreciation for ResMed (NYSE:RMD) Stock

Key Points

• Royal Bank of Canada raised its target price on ResMed to $321 and kept an "outperform" rating, implying roughly a 57.45% upside from current levels.
• ResMed beat Q3 revenue and EPS estimates with ~11% revenue growth, margin expansion, a quarterly dividend and $262M in buybacks, yet shares fell about 4.6% to $203.88 after the report amid profit‑taking and analyst re‑ratings.
• Analyst sentiment is mixed but skewed positive, with a consensus rating of "Moderate Buy" and an average price target of $286.18 as brokers both raised and lowered forecasts.

ResMed (NYSE:RMD - Get Free Report) had its target price hoisted by research analysts at Royal Bank Of Canada from $314.00 to $321.00 in a report released on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the medical equipment provider's stock. Royal Bank Of Canada's price objective indicates a potential upside of 57.45% from the company's current price.

A number of other research firms also recently commented on RMD. Stifel Nicolaus raised their price objective on ResMed from $260.00 to $265.00 and gave the stock a "hold" rating in a report on Friday, January 30th. Robert W. Baird set a $225.00 price objective on ResMed in a report on Friday. Evercore set a $255.00 price objective on ResMed and gave the stock an "outperform" rating in a report on Monday, April 13th. JPMorgan Chase & Co. assumed coverage on ResMed in a report on Wednesday, April 15th. They issued an "overweight" rating on the stock. Finally, Citigroup cut their price objective on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a report on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $286.18.

ResMed Trading Down 4.6%

NYSE RMD traded down $9.93 during trading hours on Friday, hitting $203.88. 1,595,423 shares of the company's stock were exchanged, compared to its average volume of 1,093,835. The business's 50 day moving average is $233.35 and its 200-day moving average is $246.69. ResMed has a 12-month low of $198.64 and a 12-month high of $293.81. The firm has a market capitalization of $29.70 billion, a P/E ratio of 20.13, a price-to-earnings-growth ratio of 1.40 and a beta of 0.93. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.32 and a current ratio of 3.06.

ResMed (NYSE:RMD - Get Free Report) last released its 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. ResMed had a return on equity of 25.20% and a net margin of 27.53%.The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same period in the prior year, the business posted $2.37 earnings per share. The firm's revenue for the quarter was up 10.8% compared to the same quarter last year. As a group, analysts anticipate that ResMed will post 11.05 EPS for the current fiscal year.

Insider Transactions at ResMed

In other ResMed news, CEO Michael J. Farrell sold 4,991 shares of the firm's stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $225.50, for a total transaction of $1,125,470.50. Following the completion of the sale, the chief executive officer owned 466,223 shares in the company, valued at $105,133,286.50. This trade represents a 1.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 2,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total value of $450,000.00. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 21,023 shares of company stock valued at $5,230,857. Insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

A number of hedge funds have recently bought and sold shares of the business. Simplicity Wealth LLC acquired a new stake in ResMed during the 1st quarter valued at approximately $228,000. Candriam S.C.A. grew its stake in ResMed by 4.0% during the 1st quarter. Candriam S.C.A. now owns 10,945 shares of the medical equipment provider's stock valued at $2,457,000 after purchasing an additional 425 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in ResMed by 12.9% during the 1st quarter. Sequoia Financial Advisors LLC now owns 6,431 shares of the medical equipment provider's stock valued at $1,444,000 after purchasing an additional 737 shares in the last quarter. Kestra Advisory Services LLC grew its stake in ResMed by 36.3% during the 1st quarter. Kestra Advisory Services LLC now owns 2,277 shares of the medical equipment provider's stock valued at $511,000 after purchasing an additional 606 shares in the last quarter. Finally, Azzad Asset Management Inc. ADV grew its stake in ResMed by 3.2% during the 1st quarter. Azzad Asset Management Inc. ADV now owns 4,606 shares of the medical equipment provider's stock valued at $1,034,000 after purchasing an additional 143 shares in the last quarter. Institutional investors and hedge funds own 54.98% of the company's stock.

More ResMed News

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed beat Q3 revenue and EPS estimates, delivered double‑digit revenue growth (~11%), and reported significant margin expansion and strong operating cash flow — evidence of solid underlying demand and profitable execution. Resmed Inc. Announces Results for the Third Quarter of Fiscal Year 2026
• Positive Sentiment: The company declared a quarterly dividend ($0.60 per share) and returned capital through buybacks ($262M noted for the quarter), supporting shareholder returns and signaling confidence in cash generation. (Dividend ex‑date May 14 / payment June 18.)
• Neutral Sentiment: Management announced the CFO’s planned retirement and named Aaron Bloomer as successor — an orderly transition that reduces uncertainty but merits watching for execution. ResMed beats quarterly profit estimates, names new CFO
• Neutral Sentiment: Analyst and media commentary is parsing whether stronger margins and any updated outlook materially change ResMed’s longer‑term narrative; this discussion could drive volatility but is not a binary catalyst. Did Stronger Profit Forecasts and Sleep Apnea Tailwinds Just Shift ResMed's (RMD) Investment Narrative?
• Negative Sentiment: Wells Fargo cut its price target from $270 to $227 and moved to an "equal weight" rating — a visible sell‑side downgrade that likely pressured sentiment and trading post‑earnings. Benzinga
• Negative Sentiment: Despite the beat, shares slid after the print — suggesting profit‑taking, some investor disappointment around expectations/guidance nuance, or the analyst re‑ratings outweighed the operational beat. RMD Stock Down Despite Q3 Earnings & Revenue Beat, Margins Rise

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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