ResMed (NYSE:RMD) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

ResMed (NYSE:RMD) had its target price increased by research analysts at Royal Bank Of Canada from $262.00 to $288.00 in a report released on Friday, Benzinga reports. The firm currently has an “outperform” rating on the medical equipment provider’s stock. Royal Bank Of Canada‘s target price would suggest a potential upside of 24.17% from the company’s previous close.

A number of other equities research analysts have also commented on the stock. Weiss Ratings upgraded shares of ResMed from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Needham & Company LLC restated a “hold” rating on shares of ResMed in a research note on Friday. Wells Fargo & Company decreased their target price on ResMed from $225.00 to $215.00 and set an “equal weight” rating on the stock in a research report on Friday, August 7th. Mizuho set a $270.00 target price on shares of ResMed in a research report on Friday. Finally, UBS Group restated a “buy” rating and issued a $300.00 price target on shares of ResMed in a research report on Tuesday, July 21st. Seven investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $251.00.

ResMed Price Performance

RMD traded down $20.89 during trading on Friday, hitting $231.94. The company’s stock had a trading volume of 1,650,374 shares, compared to its average volume of 1,293,578. 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 stock has a market capitalization of $32.62 billion, a price-to-earnings ratio of 22.23, a price-to-earnings-growth ratio of 1.53 and a beta of 0.75. The firm’s 50 day moving average price is $231.83 and its two-hundred day moving average price is $225.57. ResMed has a 12 month low of $180.26 and a 12 month high of $277.67.

ResMed (NYSE:RMD) last posted its quarterly earnings data on Thursday, October 29th. The medical equipment provider reported $2.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.67 by $0.24. ResMed had a return on equity of 25.58% and a net margin of 26.94%. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the prior year, the business earned $2.55 EPS. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. Sell-side analysts forecast that ResMed will post 12.11 earnings per share for the current fiscal year.

Insider Buying and Selling at ResMed

In related news, CEO Michael Farrell sold 4,991 shares of ResMed stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $226.33, for a total value of $1,129,613.03. Following the completion of the sale, the chief executive officer owned 479,803 shares of the company’s stock, valued at approximately $108,593,812.99. This trade represents a 1.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Michael Rider sold 400 shares of the stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $255.00, for a total value of $102,000.00. Following the completion of the sale, the general counsel directly owned 12,318 shares of the company’s stock, valued at approximately $3,141,090. This trade represents a 3.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 24,343 shares of company stock valued at $5,396,098. Company insiders own 0.58% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of ResMed during the second quarter valued at about $2,400,375,000. State Street Corp raised its position in shares of ResMed by 0.6% in the 2nd quarter. State Street Corp now owns 6,680,735 shares of the medical equipment provider’s stock worth $1,301,942,000 after acquiring an additional 37,567 shares in the last quarter. Bank of New York Mellon Corp boosted its position in shares of ResMed by 0.7% during the first quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider’s stock valued at $1,105,651,000 after purchasing an additional 34,732 shares in the last quarter. First Trust Advisors LP grew its stake in ResMed by 1.3% in the first quarter. First Trust Advisors LP now owns 1,537,825 shares of the medical equipment provider’s stock worth $345,211,000 after purchasing an additional 20,233 shares during the period. Finally, Swedbank AB raised its holdings in ResMed by 22.5% in the first quarter. Swedbank AB now owns 1,350,234 shares of the medical equipment provider’s stock worth $303,101,000 after purchasing an additional 247,758 shares in the last quarter. 54.98% of the stock is owned by institutional investors.

ResMed News Summary

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed reported adjusted earnings of $2.91 per share, well above the $2.67 analyst consensus and up from $2.55 a year earlier. Revenue increased 5.9% year over year to $1.41 billion, also exceeding estimates of $1.39 billion. ResMed Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Sustained demand for sleep devices, productivity improvements and gross-margin expansion supported the quarterly performance, providing evidence that ResMed continues to convert sales growth into stronger profitability. RMD Stock Up on Q1 Earnings and Revenue Beat
• Positive Sentiment: The company declared a quarterly dividend of $0.66 per share, or $2.64 annually, reinforcing its shareholder-return profile. The dividend yield is approximately 1.1%. ResMed Dividend Information
• Neutral Sentiment: KeyCorp raised its price target from $267 to $277 and maintained an Overweight rating, implying substantial potential upside based on the cited share price. However, the target is an analyst opinion rather than a change to company guidance. KeyCorp Raises ResMed Price Target
• Negative Sentiment: RMD’s decline following the earnings release suggests the stronger-than-expected results were already reflected in the stock or that investors wanted faster growth or more upbeat forward commentary. The roughly 6% revenue increase remains healthy but may have appeared less compelling relative to the company’s valuation.

About ResMed

ResMed Inc is a medical equipment and software company that develops solutions for sleep-disordered breathing, respiratory conditions and other chronic diseases. The company is best known for its positive airway pressure (PAP) devices used to treat obstructive sleep apnea, along with masks, accessories and related patient support services.

ResMed also provides cloud-connected health technology, including remote-monitoring platforms and software used by healthcare providers, medical equipment suppliers and care organizations.