StockNews.com Upgrades ResMed (NYSE:RMD) to Buy

StockNews.com upgraded shares of ResMed (NYSE:RMD) from a hold rating to a buy rating in a report published on Tuesday morning.

A number of other equities research analysts also recently weighed in on the company. Oppenheimer downgraded ResMed from an “outperform” rating to a “market perform” rating in a research report on Tuesday, June 25th. Robert W. Baird began coverage on ResMed in a report on Tuesday, September 24th. They set an “outperform” rating and a $280.00 price objective on the stock. Royal Bank of Canada upped their target price on ResMed from $206.00 to $224.00 and gave the company a “sector perform” rating in a research note on Tuesday, October 1st. Baird R W upgraded shares of ResMed to a “strong-buy” rating in a research note on Tuesday, September 24th. Finally, Needham & Company LLC restated a “hold” rating on shares of ResMed in a research note on Tuesday, October 1st. One research analyst has rated the stock with a sell rating, five have issued a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $218.18.

ResMed Stock Up 0.2 %

RMD opened at $240.00 on Tuesday. The business has a 50 day moving average of $238.78 and a 200-day moving average of $215.88. The stock has a market capitalization of $35.22 billion, a price-to-earnings ratio of 34.63, a P/E/G ratio of 2.17 and a beta of 0.69. The company has a current ratio of 2.59, a quick ratio of 1.69 and a debt-to-equity ratio of 0.14. ResMed has a 1-year low of $132.24 and a 1-year high of $255.18.

ResMed (NYSE:RMD) last issued its quarterly earnings results on Thursday, August 1st. The medical equipment provider reported $2.08 earnings per share for the quarter, beating analysts’ consensus estimates of $2.03 by $0.05. ResMed had a net margin of 21.79% and a return on equity of 25.00%. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the prior year, the firm earned $1.60 EPS. The business’s revenue was up 6.9% on a year-over-year basis. As a group, sell-side analysts anticipate that ResMed will post 9.02 earnings per share for the current year.

ResMed Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 19th. Investors of record on Thursday, August 15th were given a dividend of $0.53 per share. The ex-dividend date of this dividend was Thursday, August 15th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.88%. This is a boost from ResMed’s previous quarterly dividend of $0.48. ResMed’s dividend payout ratio (DPR) is 30.59%.

Insider Buying and Selling at ResMed

In other news, insider Kaushik Ghoshal sold 4,260 shares of the firm’s stock in a transaction that occurred on Friday, October 11th. The shares were sold at an average price of $238.48, for a total transaction of $1,015,924.80. Following the completion of the sale, the insider now owns 21,788 shares of the company’s stock, valued at approximately $5,196,002.24. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. In other news, insider Kaushik Ghoshal sold 4,260 shares of the business’s stock in a transaction that occurred on Friday, October 11th. The stock was sold at an average price of $238.48, for a total value of $1,015,924.80. Following the transaction, the insider now directly owns 21,788 shares of the company’s stock, valued at $5,196,002.24. The trade was a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael J. Farrell sold 14,683 shares of the firm’s stock in a transaction on Monday, September 9th. The shares were sold at an average price of $248.38, for a total value of $3,646,963.54. Following the sale, the chief executive officer now directly owns 464,169 shares of the company’s stock, valued at $115,290,296.22. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 123,874 shares of company stock worth $28,151,142 over the last ninety days. Corporate insiders own 0.71% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in RMD. OFI Invest Asset Management acquired a new stake in ResMed in the 2nd quarter valued at about $32,000. BOK Financial Private Wealth Inc. bought a new position in ResMed in the 1st quarter worth approximately $35,000. Versant Capital Management Inc lifted its holdings in ResMed by 196.7% during the 2nd quarter. Versant Capital Management Inc now owns 181 shares of the medical equipment provider’s stock worth $35,000 after buying an additional 120 shares in the last quarter. Financial Connections Group Inc. bought a new position in ResMed in the 2nd quarter valued at $37,000. Finally, Riverview Trust Co acquired a new stake in shares of ResMed in the 1st quarter valued at $42,000. 54.98% of the stock is owned by institutional investors.

About ResMed

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.