ResMed Inc. (NYSE:RMD) Receives $240.31 Consensus Price Target from Brokerages

Shares of ResMed Inc. (NYSE:RMD) have been assigned an average rating of “Hold” from the sixteen ratings firms that are currently covering the company, MarketBeat reports. Ten analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $240.3077.

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company reduced their price objective on shares of ResMed from $225.00 to $215.00 and set an “equal weight” rating on the stock in a research note on Friday, August 7th. Mizuho cut their price target on shares of ResMed from $235.00 to $220.00 and set an “outperform” rating for the company in a report on Wednesday, July 15th. Royal Bank Of Canada increased their price target on shares of ResMed from $234.00 to $244.00 and gave the stock a “sector perform” rating in a research report on Friday, August 7th. Weiss Ratings raised shares of ResMed from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, Morgan Stanley restated an “equal weight” rating and set a $230.00 price objective (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th.

ResMed Stock Performance

Shares of NYSE:RMD opened at $228.91 on Tuesday. The company’s 50 day moving average price is $214.95 and its two-hundred day moving average price is $218.15. ResMed has a 12-month low of $180.26 and a 12-month high of $284.87. The firm has a market cap of $33.02 billion, a PE ratio of 21.95, a PEG ratio of 1.45 and a beta of 0.77. The company has a quick ratio of 2.42, a current ratio of 3.10 and a debt-to-equity ratio of 0.06.

ResMed (NYSE:RMD) last issued its quarterly earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.89 by $0.06. The company had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.46 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%.ResMed’s revenue was up 8.6% on a year-over-year basis. During the same quarter last year, the business earned $2.55 earnings per share. Equities research analysts predict that ResMed will post 12.03 earnings per share for the current year.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be paid a $0.66 dividend. This represents a $2.64 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Thursday, August 20th. This is a positive change from ResMed’s previous quarterly dividend of $0.60. ResMed’s dividend payout ratio is 25.31%.

Insiders Place Their Bets

In other ResMed news, Director Peter C. Farrell sold 8,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the director owned 52,773 shares of the company’s stock, valued at approximately $11,873,925. The trade was a 13.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the completion of the transaction, the chief executive officer directly owned 466,256 shares of the company’s stock, valued at $95,904,196.64. This trade represents a 1.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 22,973 shares of company stock valued at $4,885,436 in the last three months. 0.65% of the stock is owned by insiders.

Institutional Trading of ResMed

Hedge funds have recently added to or reduced their stakes in the stock. American Capital Management Inc. purchased a new stake in ResMed in the second quarter worth $44,522,000. Hsbc Holdings PLC increased its position in ResMed by 17.6% during the 4th quarter. Hsbc Holdings PLC now owns 328,785 shares of the medical equipment provider’s stock valued at $79,321,000 after purchasing an additional 49,253 shares during the period. BlackRock Inc. purchased a new position in ResMed during the 2nd quarter valued at $2,400,375,000. Goldman Sachs Group Inc. raised its holdings in ResMed by 13.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 979,087 shares of the medical equipment provider’s stock worth $235,833,000 after purchasing an additional 118,296 shares in the last quarter. Finally, Polymer Capital Management HK LTD bought a new position in ResMed in the 2nd quarter worth $972,000. Institutional investors and hedge funds own 54.98% of the company’s stock.

About ResMed

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.