Wells Fargo & Company Initiates Coverage on ResMed (NYSE:RMD)

Equities research analysts at Wells Fargo & Company began coverage on shares of ResMed (NYSE:RMD) in a research note issued to investors on Monday, Marketbeat Ratings reports. The brokerage set an “equal weight” rating and a $280.00 price target on the medical equipment provider’s stock. Wells Fargo & Company‘s target price would indicate a potential upside of 3.54% from the company’s current price.

RMD has been the topic of a number of other reports. Citigroup initiated coverage on ResMed in a report on Thursday, September 18th. They set a “buy” rating and a $330.00 price target on the stock. KeyCorp raised their price objective on ResMed from $274.00 to $298.00 and gave the company an “overweight” rating in a research note on Friday, August 1st. Mizuho raised their price objective on ResMed from $270.00 to $290.00 and gave the company an “outperform” rating in a research note on Friday, August 1st. Weiss Ratings restated a “buy (b-)” rating on shares of ResMed in a research note on Wednesday, October 8th. Finally, Wall Street Zen lowered ResMed from a “buy” rating to a “hold” rating in a research report on Sunday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, ResMed has a consensus rating of “Moderate Buy” and a consensus target price of $292.91.

ResMed Stock Performance

Shares of RMD stock opened at $270.43 on Monday. The business’s 50 day simple moving average is $277.86 and its 200 day simple moving average is $256.39. ResMed has a one year low of $199.92 and a one year high of $293.81. The stock has a market capitalization of $39.47 billion, a PE ratio of 28.44, a PEG ratio of 1.83 and a beta of 0.83. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53.

ResMed (NYSE:RMD) last announced its earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 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 analysts’ expectations of $1.33 billion. ResMed had a return on equity of 25.62% and a net margin of 27.22%.The firm’s revenue was up 10.2% on a year-over-year basis. During the same period in the prior year, the business posted $2.08 earnings per share. As a group, research analysts forecast that ResMed will post 9.47 earnings per share for the current year.

Insider Buying and Selling

In related news, Director John Hernandez sold 2,575 shares of ResMed stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $287.10, for a total value of $739,282.50. Following the completion of the sale, the director owned 4,045 shares of the company’s stock, valued at approximately $1,161,319.50. This trade represents a 38.90% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Michael J. Farrell sold 8,009 shares of ResMed stock in a transaction dated Tuesday, October 7th. The stock was sold at an average price of $282.85, for a total value of $2,265,345.65. Following the completion of the sale, the chief executive officer directly owned 467,792 shares of the company’s stock, valued at approximately $132,314,967.20. This trade represents a 1.68% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 18,743 shares of company stock valued at $5,284,514. 0.65% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RMD. WFA of San Diego LLC purchased a new position in ResMed during the 2nd quarter valued at about $26,000. Global X Japan Co. Ltd. grew its holdings in ResMed by 121.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 124 shares of the medical equipment provider’s stock valued at $28,000 after buying an additional 68 shares in the last quarter. Golden State Wealth Management LLC grew its holdings in ResMed by 384.8% during the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider’s stock valued at $36,000 after buying an additional 127 shares in the last quarter. Zions Bancorporation National Association UT bought a new stake in shares of ResMed during the 1st quarter valued at about $45,000. Finally, Groupe la Francaise bought a new stake in shares of ResMed during the 1st quarter valued at about $45,000. Hedge funds and other 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.