ResMed (NYSE:RMD) Shares Gap Up – Here’s What Happened

by · The Markets Daily

Shares of ResMed Inc. (NYSE:RMD – Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $246.52, but opened at $257.40. ResMed shares last traded at $252.1560, with a volume of 318,785 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Morgan Stanley set a $305.00 price target on ResMed in a report on Friday, October 31st. UBS Group raised ResMed to a “strong-buy” rating in a research report on Tuesday, September 16th. Robert W. Baird lowered their target price on ResMed from $320.00 to $300.00 and set an “outperform” rating on the stock in a research note on Monday, November 3rd. Citigroup initiated coverage on shares of ResMed in a research report on Thursday, September 18th. They set a “buy” rating and a $330.00 price target for the company. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of ResMed in a research report on Monday. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, ResMed presently has an average rating of “Moderate Buy” and a consensus target price of $297.45.

Get Our Latest Report on RMD

ResMed Price Performance

The firm has a 50 day moving average price of $258.49 and a two-hundred day moving average price of $263.77. The company has a market cap of $36.57 billion, a P/E ratio of 25.65, a P/E/G ratio of 1.69 and a beta of 0.87. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.13 and a current ratio of 2.89.

ResMed (NYSE:RMD – Get Free Report) last released its quarterly earnings data on Friday, October 31st. The medical equipment provider reported $2.55 EPS for the quarter, beating the consensus estimate of $2.49 by $0.06. The business had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.33 billion. ResMed had a net margin of 27.35% and a return on equity of 25.45%. The company’s revenue was up 9.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.20 earnings per share. On average, analysts predict that ResMed Inc. will post 9.47 EPS for the current fiscal year.

ResMed Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 18th. Investors of record on Thursday, November 13th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Thursday, November 13th. This represents a $2.40 annualized dividend and a yield of 1.0%. ResMed’s dividend payout ratio (DPR) is 24.56%.

Insider Buying and Selling

In related news, Director Peter C. Farrell sold 2,000 shares of the business’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $251.47, for a total transaction of $502,940.00. Following the sale, the director directly owned 68,773 shares in the company, valued at approximately $17,294,346.31. The trade was a 2.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael J. Farrell sold 8,011 shares of the stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $249.75, for a total value of $2,000,747.25. Following the sale, the chief executive officer directly owned 467,866 shares in the company, valued at $116,849,533.50. This trade represents a 1.68% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 22,662 shares of company stock worth $5,946,466. Insiders own 0.65% of the company’s stock.

Institutional Investors Weigh In On ResMed

A number of institutional investors and hedge funds have recently modified their holdings of the company. ICW Investment Advisors LLC boosted its position in shares of ResMed by 0.4% in the first quarter. ICW Investment Advisors LLC now owns 11,394 shares of the medical equipment provider’s stock valued at $2,551,000 after acquiring an additional 41 shares during the period. Johnson Investment Counsel Inc. lifted its stake in ResMed by 2.8% in the 2nd quarter. Johnson Investment Counsel Inc. now owns 1,665 shares of the medical equipment provider’s stock worth $430,000 after purchasing an additional 45 shares in the last quarter. Quadcap Wealth Management LLC boosted its holdings in ResMed by 2.5% in the 2nd quarter. Quadcap Wealth Management LLC now owns 1,880 shares of the medical equipment provider’s stock valued at $485,000 after purchasing an additional 45 shares during the period. Smartleaf Asset Management LLC boosted its holdings in ResMed by 3.9% in the 1st quarter. Smartleaf Asset Management LLC now owns 1,222 shares of the medical equipment provider’s stock valued at $269,000 after purchasing an additional 46 shares during the period. Finally, Terra Nova Asset Management LLC grew its position in shares of ResMed by 0.6% during the 3rd quarter. Terra Nova Asset Management LLC now owns 7,805 shares of the medical equipment provider’s stock valued at $2,136,000 after purchasing an additional 46 shares in the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.

ResMed Company Profile

(Get Free Report)

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.

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