ResMed (NYSE:RMD) Shares Up 4.4% – Here’s Why

ResMed Inc. (NYSE:RMD)’s share price rose 4.4% on Monday . The company traded as high as $243.37 and last traded at $242.76. Approximately 611,825 shares changed hands during trading, a decline of 37% from the average daily volume of 968,424 shares. The stock had previously closed at $232.44.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on RMD shares. Piper Sandler lifted their price target on shares of ResMed from $252.00 to $260.00 and gave the stock a “neutral” rating in a report on Friday, January 31st. KeyCorp boosted their target price on ResMed from $266.00 to $280.00 and gave the company an “overweight” rating in a research note on Friday, January 31st. The Goldman Sachs Group initiated coverage on ResMed in a research note on Thursday, January 16th. They set a “buy” rating for the company. JPMorgan Chase & Co. boosted their price objective on ResMed from $270.00 to $286.00 and gave the company an “overweight” rating in a research note on Friday, January 31st. Finally, UBS Group upgraded shares of ResMed from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 31st. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, seven have given a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat, ResMed currently has an average rating of “Moderate Buy” and an average target price of $243.82.

ResMed Price Performance

The company has a market cap of $32.32 billion, a PE ratio of 25.98, a price-to-earnings-growth ratio of 1.53 and a beta of 0.74. The business has a 50 day moving average of $236.80 and a 200 day moving average of $240.13. The company has a debt-to-equity ratio of 0.13, a current ratio of 3.33 and a quick ratio of 2.29.

ResMed (NYSE:RMD) last posted its earnings results on Thursday, January 30th. The medical equipment provider reported $2.43 EPS for the quarter, topping the consensus estimate of $2.29 by $0.14. ResMed had a net margin of 25.34% and a return on equity of 26.17%. As a group, research analysts predict that ResMed Inc. will post 9.47 EPS for the current year.

ResMed Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 20th. Shareholders of record on Thursday, February 13th will be issued a dividend of $0.53 per share. The ex-dividend date is Thursday, February 13th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.96%. ResMed’s dividend payout ratio (DPR) is 25.03%.

Insider Transactions at ResMed

In other ResMed news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, March 5th. The stock was sold at an average price of $227.71, for a total value of $455,420.00. Following the completion of the transaction, the director now owns 75,218 shares in the company, valued at approximately $17,127,890.78. This represents a 2.59 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kaushik Ghoshal sold 9,113 shares of the firm’s stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $235.40, for a total value of $2,145,200.20. Following the transaction, the insider now directly owns 9,725 shares of the company’s stock, valued at $2,289,265. This represents a 48.38 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 38,940 shares of company stock valued at $9,164,385. Corporate insiders own 0.71% of the company’s stock.

Hedge Funds Weigh In On ResMed

A number of institutional investors and hedge funds have recently made changes to their positions in RMD. Ashton Thomas Securities LLC bought a new position in ResMed during the 3rd quarter valued at approximately $34,000. Venturi Wealth Management LLC increased its holdings in shares of ResMed by 55.7% during the third quarter. Venturi Wealth Management LLC now owns 341 shares of the medical equipment provider’s stock valued at $83,000 after acquiring an additional 122 shares in the last quarter. Apollon Wealth Management LLC increased its holdings in shares of ResMed by 15.1% during the third quarter. Apollon Wealth Management LLC now owns 1,451 shares of the medical equipment provider’s stock valued at $354,000 after acquiring an additional 190 shares in the last quarter. Entropy Technologies LP purchased a new position in shares of ResMed in the 3rd quarter worth about $1,872,000. Finally, GSA Capital Partners LLP bought a new position in ResMed in the 3rd quarter worth about $410,000. Institutional investors own 54.98% of the company’s stock.

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.