ResMed (NYSE:RMD) Stock Price Crosses Above 50-Day Moving Average – Here’s Why

ResMed Inc. (NYSE:RMD)’s stock price crossed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $226.84 and traded as high as $242.63. ResMed shares last traded at $242.3790, with a volume of 1,090,462 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Royal Bank Of Canada raised ResMed from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $244.00 to $262.00 in a research note on Tuesday, September 15th. KeyCorp increased their target price on shares of ResMed from $255.00 to $267.00 and gave the stock an “overweight” rating in a report on Monday, August 31st. UBS Group reaffirmed a “buy” rating and set a $300.00 target price on shares of ResMed in a research report on Tuesday, July 21st. The Goldman Sachs Group reaffirmed a “buy” rating on shares of ResMed in a research report on Wednesday, July 1st. Finally, Rothschild & Co Redburn started coverage on ResMed in a research report on Wednesday, August 19th. They set a “neutral” rating and a $230.00 target price on the stock. Seven analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, ResMed currently has an average rating of “Hold” and an average target price of $243.23.

ResMed Stock Performance

The company has a quick ratio of 2.42, a current ratio of 3.10 and a debt-to-equity ratio of 0.06. The company has a market capitalization of $33.58 billion, a PE ratio of 22.89, a PEG ratio of 1.49 and a beta of 0.75. The firm has a 50-day moving average of $227.38 and a two-hundred day moving average of $214.41.

ResMed (NYSE:RMD) last posted its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $0.06. ResMed had a net margin of 26.94% and a return on equity of 25.58%. The firm had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.46 billion. During the same period in the previous year, the business posted $2.55 EPS. The business’s revenue was up 8.6% compared to the same quarter last year. Research analysts anticipate that ResMed Inc. will post 12.08 EPS for the current year.

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th were issued a $0.66 dividend. The ex-dividend date of this dividend was Thursday, August 20th. This is an increase from ResMed’s previous quarterly dividend of $0.60. This represents a $2.64 annualized dividend and a yield of 1.1%. ResMed’s dividend payout ratio is 25.31%.

Insider Buying and Selling

In other news, CEO Michael Farrell sold 4,991 shares of the company’s stock in a transaction that occurred on Wednesday, October 7th. The stock was sold at an average price of $226.33, for a total transaction of $1,129,613.03. Following the completion of the transaction, the chief executive officer directly owned 479,803 shares of the company’s stock, valued at $108,593,812.99. This represents a 1.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter Farrell sold 970 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $234.73, for a total value of $227,688.10. Following the transaction, the director owned 51,803 shares in the company, valued at $12,159,718.19. This trade represents a 1.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 23,943 shares of company stock valued at $5,294,098 over the last 90 days. Company insiders own 0.58% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. American Capital Management Inc. purchased a new position in ResMed in the 2nd quarter valued at $44,522,000. Hsbc Holdings PLC raised its stake in ResMed by 17.6% during the fourth quarter. Hsbc Holdings PLC now owns 328,785 shares of the medical equipment provider’s stock worth $79,321,000 after purchasing an additional 49,253 shares during the period. BlackRock Inc. purchased a new stake in shares of ResMed during the 2nd quarter valued at approximately $2,400,375,000. Polymer Capital Management HK LTD acquired a new position in shares of ResMed in the 2nd quarter valued at $972,000. Finally, United Capital Financial Advisors LLC acquired a new position in ResMed in the second quarter valued at about $1,105,000. 54.98% of the stock is owned by hedge funds and other institutional investors.

ResMed Company Profile

ResMed Inc (NYSE: RMD) develops, manufactures and distributes medical equipment and digital health solutions for sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions. Its products include continuous positive airway pressure (CPAP), bilevel and other noninvasive ventilation devices, as well as masks, humidifiers, accessories and diagnostic equipment.

The company also provides cloud-connected software and digital health services that support patient monitoring, therapy management and communication among patients, clinicians and care providers.