ResMed (NYSE:RMD) Reaches New 1-Year High Following Analyst Upgrade

ResMed Inc. (NYSE:RMD)’s stock price hit a new 52-week high during trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock traded as high as $281.90 and last traded at $284.40, with a volume of 1796962 shares changing hands. The stock had previously closed at $271.94.

Other equities research analysts have also recently issued reports about the stock. Royal Bank Of Canada boosted their price objective on shares of ResMed from $294.00 to $300.00 and gave the company an “outperform” rating in a research report on Friday. Piper Sandler boosted their price objective on shares of ResMed from $248.00 to $270.00 and gave the company a “neutral” rating in a research report on Friday. Stifel Nicolaus boosted their price objective on shares of ResMed from $240.00 to $270.00 and gave the company a “hold” rating in a research report on Friday. KeyCorp boosted their price objective on shares of ResMed from $274.00 to $298.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Morgan Stanley set a $286.00 price objective on shares of ResMed and gave the company an “overweight” rating in a research report on Tuesday, May 20th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, ResMed presently has a consensus rating of “Moderate Buy” and a consensus price target of $274.83.

Insider Activity at ResMed

In related news, CEO Michael J. Farrell sold 8,009 shares of the stock in a transaction that occurred 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 completion of the sale, the chief executive officer owned 455,503 shares of the company’s stock, valued at $116,936,730.16. This represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Witte Jan De sold 2,000 shares of the stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $243.47, for a total transaction of $486,940.00. Following the sale, the director directly owned 5,806 shares of the company’s stock, valued at $1,413,586.82. The trade was a 25.62% decrease in their position. The disclosure for this sale can be found here. Insiders sold 29,063 shares of company stock valued at $7,253,008 over the last 90 days. Insiders own 0.71% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in shares of ResMed by 1.8% during the first quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider’s stock worth $4,139,815,000 after purchasing an additional 320,240 shares during the last quarter. Invesco Ltd. grew its position in ResMed by 32.2% during the fourth quarter. Invesco Ltd. now owns 2,325,009 shares of the medical equipment provider’s stock valued at $531,706,000 after buying an additional 566,046 shares during the period. Northern Trust Corp grew its position in ResMed by 2.5% during the first quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider’s stock valued at $390,516,000 after buying an additional 41,951 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in ResMed by 4.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider’s stock valued at $223,431,000 after purchasing an additional 41,108 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in ResMed by 2.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 977,401 shares of the medical equipment provider’s stock valued at $218,791,000 after purchasing an additional 22,789 shares in the last quarter. Hedge funds and other institutional investors own 54.98% of the company’s stock.

ResMed Trading Up 4.3%

The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53. The firm has a market capitalization of $42.71 billion, a PE ratio of 30.63, a P/E/G ratio of 1.72 and a beta of 0.77. The company’s fifty day simple moving average is $257.55 and its 200-day simple moving average is $240.75.

ResMed (NYSE:RMD) last posted its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.08. The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.33 billion. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company’s revenue was up 10.2% compared to the same quarter last year. During the same period last year, the firm posted $2.08 earnings per share. As a group, sell-side analysts expect that ResMed Inc. will post 9.47 earnings per share for the current fiscal year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be paid a $0.60 dividend. This is an increase from ResMed’s previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, August 13th. ResMed’s payout ratio is 22.29%.

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.