ResMed (NYSE:RMD) Hits New 12-Month High – Here’s What Happened

Shares of ResMed Inc. (NYSE:RMD) hit a new 52-week high on Friday . The company traded as high as $293.11 and last traded at $292.56, with a volume of 140343 shares trading hands. The stock had previously closed at $288.34.

Analyst Ratings Changes

A number of research analysts recently weighed in on RMD shares. Wall Street Zen cut shares of ResMed from a “buy” rating to a “hold” rating in a report on Sunday, August 10th. Mizuho lifted their price objective on shares of ResMed from $270.00 to $290.00 and gave the company an “outperform” rating in a report on Friday, August 1st. UBS Group lifted their price objective on shares of ResMed from $285.00 to $325.00 and gave the company a “buy” rating in a report on Friday, August 1st. Stifel Nicolaus lifted their price objective on shares of ResMed from $240.00 to $270.00 and gave the company a “hold” rating in a report on Friday, August 1st. Finally, Morgan Stanley set a $286.00 price target on shares of ResMed and gave the stock an “overweight” rating in a report on Tuesday, May 20th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, ResMed has an average rating of “Moderate Buy” and an average target price of $274.83.

ResMed Stock Up 1.8%

The company has a current ratio of 3.44, a quick ratio of 2.53 and a debt-to-equity ratio of 0.11. The company has a market cap of $42.97 billion, a price-to-earnings ratio of 30.86, a PEG ratio of 1.97 and a beta of 0.77. The firm’s fifty day simple moving average is $267.91 and its 200 day simple moving average is $244.54.

ResMed (NYSE:RMD) last posted its quarterly earnings results on Thursday, July 31st. The medical equipment provider reported $2.55 EPS for the quarter, topping the consensus estimate of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The company had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same quarter in the previous year, the business posted $2.08 EPS. The firm’s revenue was up 10.2% on a year-over-year basis. Sell-side analysts predict that ResMed Inc. will post 9.47 earnings per share for the current year.

ResMed Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, August 14th will be issued a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Wednesday, August 13th. This is a positive change from ResMed’s previous quarterly dividend of $0.53. ResMed’s dividend payout ratio (DPR) is currently 25.24%.

Insider Activity

In other news, CEO Michael J. Farrell sold 8,009 shares of the company’s stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $279.48, for a total value of $2,238,355.32. Following the completion of the transaction, the chief executive officer owned 455,503 shares in the company, valued at approximately $127,303,978.44. This represents a 1.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Peter C. Farrell sold 945 shares of the company’s stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $255.49, for a total transaction of $241,438.05. Following the completion of the transaction, the director owned 68,273 shares of the company’s stock, valued at approximately $17,443,068.77. The trade was a 1.37% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 27,638 shares of company stock worth $7,311,177. Corporate insiders own 0.71% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Ballentine Partners LLC raised its position in ResMed by 6.3% in the 1st quarter. Ballentine Partners LLC now owns 1,782 shares of the medical equipment provider’s stock valued at $399,000 after purchasing an additional 105 shares during the last quarter. Golden State Wealth Management LLC raised its position in ResMed by 384.8% in the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider’s stock valued at $36,000 after purchasing an additional 127 shares during the last quarter. Exchange Traded Concepts LLC raised its position in ResMed by 393.0% in the 1st quarter. Exchange Traded Concepts LLC now owns 2,529 shares of the medical equipment provider’s stock valued at $566,000 after purchasing an additional 2,016 shares during the last quarter. MML Investors Services LLC raised its position in ResMed by 31.9% in the 4th quarter. MML Investors Services LLC now owns 11,468 shares of the medical equipment provider’s stock valued at $2,623,000 after purchasing an additional 2,771 shares during the last quarter. Finally, Private Advisor Group LLC raised its position in ResMed by 18.3% in the 1st quarter. Private Advisor Group LLC now owns 3,244 shares of the medical equipment provider’s stock valued at $726,000 after purchasing an additional 501 shares during the last quarter. Institutional investors and hedge funds own 54.98% of the company’s stock.

ResMed Company Profile

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.