ResMed (NYSE:RMD) Shares Gap Up Following Analyst Upgrade

ResMed Inc. (NYSE:RMD)’s share price gapped up before the market opened on Monday after JPMorgan Chase & Co. raised their price target on the stock from $270.00 to $286.00. The stock had previously closed at $236.18, but opened at $242.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. ResMed shares last traded at $236.57, with a volume of 219,519 shares traded.

A number of other equities analysts have also weighed in on the stock. Stifel Nicolaus initiated coverage on shares of ResMed in a research report on Friday, December 13th. They issued a “hold” rating and a $250.00 price target for the company. StockNews.com raised ResMed from a “hold” rating to a “buy” rating in a research note on Tuesday, October 15th. Needham & Company LLC restated a “hold” rating on shares of ResMed in a research note on Friday. The Goldman Sachs Group began coverage on shares of ResMed in a research report on Thursday, January 16th. They set a “buy” rating on the stock. Finally, KeyCorp lifted their price target on shares of ResMed from $266.00 to $280.00 and gave the company an “overweight” rating in a report on Friday. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, ResMed presently has an average rating of “Moderate Buy” and an average price target of $244.73.

Insider Transactions at ResMed

In related news, Director Peter C. Farrell sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $245.65, for a total transaction of $491,300.00. Following the completion of the sale, the director now directly owns 81,218 shares of the company’s stock, valued at approximately $19,951,201.70. This trade represents a 2.40 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Justin Leong sold 6,160 shares of the company’s stock in a transaction on Friday, November 22nd. The shares were sold at an average price of $243.09, for a total value of $1,497,434.40. Following the completion of the transaction, the insider now directly owns 21,718 shares in the company, valued at $5,279,428.62. This trade represents a 22.10 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 11,030 shares of company stock worth $2,702,687. 0.71% of the stock is currently owned by company insiders.

Institutional Trading of ResMed

Large investors have recently made changes to their positions in the stock. Handelsbanken Fonder AB lifted its holdings in ResMed by 5.5% during the 4th quarter. Handelsbanken Fonder AB now owns 86,029 shares of the medical equipment provider’s stock valued at $19,674,000 after buying an additional 4,475 shares in the last quarter. Cumberland Partners Ltd boosted its holdings in shares of ResMed by 550.0% in the fourth quarter. Cumberland Partners Ltd now owns 13,000 shares of the medical equipment provider’s stock valued at $2,973,000 after purchasing an additional 11,000 shares during the period. Ieq Capital LLC grew its stake in ResMed by 184.3% in the fourth quarter. Ieq Capital LLC now owns 39,693 shares of the medical equipment provider’s stock worth $9,077,000 after purchasing an additional 25,730 shares in the last quarter. Alberta Investment Management Corp purchased a new position in shares of ResMed during the fourth quarter valued at $2,378,000. Finally, Global Retirement Partners LLC raised its holdings in shares of ResMed by 50.8% in the 4th quarter. Global Retirement Partners LLC now owns 582 shares of the medical equipment provider’s stock valued at $133,000 after purchasing an additional 196 shares in the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

ResMed Stock Performance

The business has a fifty day simple moving average of $240.17 and a two-hundred day simple moving average of $236.63. The company has a market cap of $34.79 billion, a PE ratio of 27.93, a price-to-earnings-growth ratio of 1.69 and a beta of 0.70. 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 released its quarterly earnings results on Thursday, January 30th. The medical equipment provider reported $2.43 earnings per share for the quarter, beating analysts’ consensus estimates of $2.29 by $0.14. ResMed had a net margin of 25.34% and a return on equity of 26.17%. Research analysts anticipate that ResMed Inc. will post 9.41 earnings per share for the current year.

ResMed Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 20th. Stockholders 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 annualized dividend and a dividend yield of 0.89%. ResMed’s dividend payout ratio is presently 25.03%.

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.