ResMed (NYSE:RMD) Shares Gap Up After Better-Than-Expected Earnings

ResMed Inc. (NYSE:RMD)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $183.42, but opened at $203.02. ResMed shares last traded at $210.06, with a volume of 882,688 shares trading hands.

The medical equipment provider reported $2.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.91 by $0.22. The business had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.17 billion. ResMed had a net margin of 19.77% and a return on equity of 23.86%. The firm’s quarterly revenue was up 7.2% compared to the same quarter last year. During the same quarter last year, the firm earned $1.68 earnings per share.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on RMD. UBS Group lifted their price target on shares of ResMed from $175.00 to $180.00 and gave the company a “neutral” rating in a research note on Thursday, January 25th. Royal Bank of Canada lifted their target price on ResMed from $187.00 to $200.00 and gave the company a “sector perform” rating in a research note on Friday. Needham & Company LLC increased their price target on shares of ResMed from $224.00 to $236.00 and gave the company a “buy” rating in a research report on Friday. Oppenheimer cut their price objective on shares of ResMed from $205.00 to $200.00 and set an “outperform” rating on the stock in a research report on Friday. Finally, JPMorgan Chase & Co. increased their target price on shares of ResMed from $160.00 to $195.00 and gave the company an “overweight” rating in a research report on Tuesday, January 9th. Four research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, ResMed currently has an average rating of “Moderate Buy” and an average target price of $202.80.

Insider Buying and Selling at ResMed

In other ResMed news, Director Peter C. Farrell sold 10,935 shares of the business’s stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $182.66, for a total transaction of $1,997,387.10. Following the sale, the director now owns 157,404 shares in the company, valued at approximately $28,751,414.64. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In related news, General Counsel Michael J. Rider sold 200 shares of the business’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $173.25, for a total transaction of $34,650.00. Following the completion of the transaction, the general counsel now directly owns 6,688 shares in the company, valued at $1,158,696. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Peter C. Farrell sold 10,935 shares of the company’s stock in a transaction on Thursday, February 22nd. The shares were sold at an average price of $182.66, for a total transaction of $1,997,387.10. Following the completion of the sale, the director now directly owns 157,404 shares in the company, valued at $28,751,414.64. The disclosure for this sale can be found here. In the last quarter, insiders have sold 11,216 shares of company stock worth $2,046,617. 1.21% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ResMed

Several institutional investors and hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC grew its holdings in ResMed by 224.6% during the third quarter. EverSource Wealth Advisors LLC now owns 185 shares of the medical equipment provider’s stock worth $27,000 after acquiring an additional 128 shares during the period. Atlantic Edge Private Wealth Management LLC acquired a new position in ResMed in the fourth quarter valued at approximately $27,000. Operose Advisors LLC purchased a new stake in ResMed in the 3rd quarter worth approximately $32,000. Hall Laurie J Trustee acquired a new stake in shares of ResMed during the 1st quarter worth approximately $32,000. Finally, Planned Solutions Inc. purchased a new position in shares of ResMed during the 4th quarter valued at approximately $34,000. Institutional investors and hedge funds own 54.98% of the company’s stock.

ResMed Stock Performance

The stock has a market capitalization of $32.07 billion, a price-to-earnings ratio of 36.04, a PEG ratio of 2.25 and a beta of 0.67. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.89 and a current ratio of 3.11. The firm’s 50 day moving average is $187.07 and its 200-day moving average is $171.97.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It 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 technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.