ResMed (NYSE:RMD) Trading 4.5% Higher – Should You Buy?

ResMed Inc. (NYSE:RMD) shares were up 4.5% during mid-day trading on Tuesday . The stock traded as high as $233.23 and last traded at $232.9910. 419,842 shares were traded during trading, a decline of 68% from the average daily volume of 1,305,453 shares. The stock had previously closed at $222.99.

Wall Street Analyst Weigh In

RMD has been the subject of a number of research reports. Morgan Stanley restated an “equal weight” rating and issued a $230.00 price objective (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. The Goldman Sachs Group reiterated a “buy” rating on shares of ResMed in a report on Wednesday, July 1st. UBS Group reissued a “buy” rating and issued a $300.00 price target on shares of ResMed in a research report on Tuesday, July 21st. Mizuho dropped their price target on shares of ResMed from $235.00 to $220.00 and set an “outperform” rating for the company in a research note on Wednesday, July 15th. Finally, Rothschild & Co Redburn assumed coverage on ResMed in a research report on Wednesday, August 19th. They set a “neutral” rating and a $230.00 price objective on the stock. Seven equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $241.69.

ResMed Price Performance

The stock’s 50 day moving average is $217.48 and its two-hundred day moving average is $216.49. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42. The stock has a market capitalization of $33.53 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 1.38 and a beta of 0.77.

ResMed (NYSE:RMD) last issued its earnings results on Thursday, August 6th. The medical equipment provider reported $2.95 earnings per share 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 for the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter last year, the company earned $2.55 earnings per share. The firm’s revenue was up 8.6% compared to the same quarter last year. As a group, sell-side analysts forecast that ResMed Inc. will post 12.02 earnings per share for the current fiscal year.

ResMed Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.1%. 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 (DPR) is 25.31%.

Insiders Place Their Bets

In related news, Director Peter C. Farrell sold 970 shares of the stock in a transaction on Wednesday, September 2nd. The stock was 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 of the company’s stock, valued at $12,159,718.19. This represents a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the firm’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $222.44, for a total value of $1,110,198.04. Following the completion of the sale, the chief executive officer owned 466,256 shares in the company, valued at approximately $103,713,984.64. This represents a 1.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 23,943 shares of company stock worth $5,255,268 over the last 90 days. Company insiders own 0.65% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Kera Capital Partners Inc. lifted its stake in ResMed by 6.6% during the fourth quarter. Kera Capital Partners Inc. now owns 841 shares of the medical equipment provider’s stock worth $217,000 after purchasing an additional 52 shares during the last quarter. Andina Capital Management LLC increased its stake in ResMed by 2.9% in the fourth quarter. Andina Capital Management LLC now owns 1,988 shares of the medical equipment provider’s stock valued at $479,000 after purchasing an additional 56 shares during the last quarter. Turtle Creek Wealth Advisors LLC increased its stake in ResMed by 6.2% in the first quarter. Turtle Creek Wealth Advisors LLC now owns 994 shares of the medical equipment provider’s stock valued at $223,000 after purchasing an additional 58 shares during the last quarter. Meridian Management Co. raised its holdings in ResMed by 0.6% during the first quarter. Meridian Management Co. now owns 11,332 shares of the medical equipment provider’s stock worth $2,544,000 after purchasing an additional 70 shares in the last quarter. Finally, Glenmede Trust Co. NA raised its holdings in ResMed by 1.3% during the first quarter. Glenmede Trust Co. NA now owns 5,479 shares of the medical equipment provider’s stock worth $1,230,000 after purchasing an additional 71 shares in the last quarter. 54.98% of the stock is owned by institutional investors and hedge funds.

About ResMed

ResMed Inc is a medical equipment and software company that develops products and services for the diagnosis and treatment of sleep-disordered breathing and other respiratory conditions. Its offerings include continuous positive airway pressure (CPAP) and other positive airway pressure devices, masks, ventilation systems, oxygen-related solutions, and connected health technologies.

The company also provides cloud-based software and digital health platforms that help clinicians, home medical equipment providers, and patients monitor therapy, manage equipment, and support adherence to treatment.