Wall Street Zen Upgrades ResMed (NYSE:RMD) to "Buy"

Key Points

• Wall Street Zen has upgraded ResMed (NYSE:RMD) from a "hold" rating to a "buy" rating, indicating increased confidence in the stock's potential.
• Multiple analysts have revised their price targets for ResMed, with significant increases; for instance, Piper Sandler and Stifel Nicolaus raised their targets to $270.00.
• ResMed reported quarterly earnings of $2.55 per share, surpassing estimates and showing a 10.2% year-over-year revenue increase, signaling strong financial performance.

ResMed (NYSE:RMD - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

Other equities analysts have also recently issued reports about the stock. Piper Sandler lifted their price objective on shares of ResMed from $248.00 to $270.00 and gave the stock a "neutral" rating in a research report on Friday. Stifel Nicolaus lifted their target price on shares of ResMed from $240.00 to $270.00 and gave the stock a "hold" rating in a report on Friday. KeyCorp increased their price target on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a report on Friday. Royal Bank Of Canada raised their price objective on shares of ResMed from $294.00 to $300.00 and gave the stock an "outperform" rating in a research report on Friday. Finally, Mizuho upped their target price on ResMed from $270.00 to $290.00 and gave the company an "outperform" rating in a research report on Friday. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, ResMed presently has a consensus rating of "Moderate Buy" and a consensus price target of $274.83.

ResMed Stock Performance

RMD stock opened at $278.78 on Friday. ResMed has a 1-year low of $199.92 and a 1-year high of $281.90. The company has a current ratio of 3.41, a quick ratio of 2.49 and a debt-to-equity ratio of 0.12. The firm has a market cap of $40.88 billion, a PE ratio of 29.31, a P/E/G ratio of 1.69 and a beta of 0.77. The business's 50-day moving average price is $256.59 and its two-hundred day moving average price is $240.32.

ResMed (NYSE:RMD - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share for the quarter, topping analysts' consensus estimates of $2.47 by $0.08. ResMed had a return on equity of 26.39% and a net margin of 27.22%. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter in the prior year, the firm posted $2.08 EPS. The business's revenue was up 10.2% on a year-over-year basis. As a group, research analysts forecast that ResMed will post 9.47 earnings per share for the current year.

Insider Transactions at ResMed

In other news, Director Peter C. Farrell sold 2,000 shares of the business's stock in a transaction on Wednesday, May 7th. The stock was sold at an average price of $242.25, for a total value of $484,500.00. Following the completion of the transaction, the director owned 71,218 shares in the company, valued at $17,252,560.50. The trade was a 2.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Michael J. Farrell sold 8,009 shares of the business's stock in a transaction on Monday, July 7th. The shares were sold at an average price of $256.72, for a total transaction of $2,056,070.48. Following the sale, the chief executive officer owned 455,503 shares of the company's stock, valued at approximately $116,936,730.16. This represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 29,013 shares of company stock worth $7,238,913. Corporate insiders own 0.71% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Global X Japan Co. Ltd. boosted its holdings in shares of ResMed by 121.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider's stock worth $28,000 after purchasing an additional 68 shares during the period. Colonial Trust Co SC lifted its position in ResMed by 6,250.0% in the fourth quarter. Colonial Trust Co SC now owns 127 shares of the medical equipment provider's stock worth $29,000 after buying an additional 125 shares during the last quarter. Optiver Holding B.V. purchased a new position in ResMed during the fourth quarter worth $33,000. Golden State Wealth Management LLC increased its position in ResMed by 384.8% during the first quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock valued at $36,000 after acquiring an additional 127 shares during the last quarter. Finally, Itau Unibanco Holding S.A. raised its stake in shares of ResMed by 1,000.0% in the fourth quarter. Itau Unibanco Holding S.A. now owns 165 shares of the medical equipment provider's stock valued at $38,000 after acquiring an additional 150 shares during the period. Institutional investors own 54.98% of the company's stock.

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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