ResMed (NYSE:RMD) Sets New 1-Year High After Strong Earnings

ResMed Inc. (NYSE:RMD)’s share price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $263.05 and last traded at $260.50, with a volume of 119975 shares trading hands. The stock had previously closed at $252.86.

The medical equipment provider reported $2.43 earnings per share for the quarter, topping analysts’ consensus estimates of $2.29 by $0.14. ResMed had a net margin of 23.15% and a return on equity of 25.53%.

ResMed Dividend Announcement

The firm also recently declared 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. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.90%. The ex-dividend date is Thursday, February 13th. ResMed’s payout ratio is currently 25.03%.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. The Goldman Sachs Group assumed coverage on shares of ResMed in a research note on Thursday, January 16th. They set a “buy” rating on the stock. Piper Sandler raised their target price on shares of ResMed from $252.00 to $260.00 and gave the stock a “neutral” rating in a report on Friday. Needham & Company LLC reaffirmed a “hold” rating on shares of ResMed in a research report on Friday. Royal Bank of Canada increased their price target on ResMed from $224.00 to $232.00 and gave the company a “sector perform” rating in a report on Friday, October 25th. Finally, Stifel Nicolaus initiated coverage on ResMed in a report on Friday, December 13th. They issued a “hold” rating and a $250.00 price objective for the company. One research analyst has rated the stock with a sell rating, six have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, ResMed presently has a consensus rating of “Moderate Buy” and an average price target of $244.73.

Insiders Place Their Bets

In other ResMed news, Director Witte Jan De sold 796 shares of the company’s stock in a transaction that occurred on Tuesday, November 12th. The shares were sold at an average price of $248.81, for a total value of $198,052.76. Following the completion of the transaction, the director now directly owns 6,723 shares in the company, valued at $1,672,749.63. This represents a 10.59 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Justin Leong sold 6,160 shares of the firm’s stock in a transaction on Friday, November 22nd. The shares were sold at an average price of $243.09, for a total transaction of $1,497,434.40. Following the sale, the insider now owns 21,718 shares in the company, valued at $5,279,428.62. The trade was a 22.10 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 11,030 shares of company stock worth $2,702,687 over the last quarter. 0.71% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RMD. True Wealth Design LLC raised its position in shares of ResMed by 2,200.0% during the third quarter. True Wealth Design LLC now owns 115 shares of the medical equipment provider’s stock valued at $28,000 after buying an additional 110 shares during the last quarter. Ashton Thomas Securities LLC purchased a new position in ResMed during the third quarter valued at $34,000. Rosenberg Matthew Hamilton purchased a new stake in ResMed in the 4th quarter worth $54,000. Capital Performance Advisors LLP purchased a new stake in ResMed in the 3rd quarter worth $60,000. Finally, Quarry LP boosted its holdings in shares of ResMed by 271.9% during the 2nd quarter. Quarry LP now owns 331 shares of the medical equipment provider’s stock valued at $63,000 after purchasing an additional 242 shares during the last quarter. Institutional investors own 54.98% of the company’s stock.

ResMed Trading Down 8.1 %

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.92 and a quick ratio of 1.91. The stock has a market cap of $34.74 billion, a PE ratio of 31.35, a price-to-earnings-growth ratio of 1.83 and a beta of 0.70. The stock has a 50-day moving average price of $240.17 and a two-hundred day moving average price of $236.21.

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.