ResMed (NYSE:RMD) Shares Gap Up After Strong Earnings

ResMed Inc. (NYSE:RMD)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $183.42, but opened at $203.02. ResMed shares last traded at $210.06, with a volume of 882,688 shares traded.

The medical equipment provider reported $2.13 EPS for the quarter, topping the consensus estimate of $1.91 by $0.22. ResMed had a return on equity of 24.92% and a net margin of 20.91%. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.17 billion. During the same period in the previous year, the business earned $1.68 earnings per share. The firm’s revenue for the quarter was up 7.2% on a year-over-year basis.

ResMed Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 13th. Shareholders of record on Thursday, May 9th will be issued a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 0.88%. The ex-dividend date is Wednesday, May 8th. ResMed’s payout ratio is currently 29.49%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on RMD shares. Royal Bank of Canada upped their target price on ResMed from $187.00 to $200.00 and gave the company a “sector perform” rating in a report on Friday. JPMorgan Chase & Co. upped their target price on ResMed from $160.00 to $195.00 and gave the company an “overweight” rating in a report on Tuesday, January 9th. KeyCorp upped their price target on ResMed from $227.00 to $238.00 and gave the company an “overweight” rating in a research note on Friday. UBS Group upped their price target on ResMed from $175.00 to $180.00 and gave the company a “neutral” rating in a research note on Thursday, January 25th. Finally, Mizuho reaffirmed a “buy” rating and issued a $215.00 price target on shares of ResMed in a research note on Wednesday, March 27th. Four investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $202.80.

Insider Buying and Selling at ResMed

In other ResMed news, Director Peter C. Farrell sold 10,935 shares of the stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $182.66, for a total value of $1,997,387.10. Following the sale, the director now owns 157,404 shares of the company’s stock, valued at approximately $28,751,414.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other ResMed news, Director Peter C. Farrell sold 10,935 shares of the stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $182.66, for a total value of $1,997,387.10. Following the sale, the director now owns 157,404 shares of the company’s stock, valued at approximately $28,751,414.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Michael J. Rider sold 200 shares of the stock in a transaction dated Friday, March 1st. The shares were sold at an average price of $173.25, for a total value of $34,650.00. Following the completion of the transaction, the general counsel now owns 6,688 shares in the company, valued at approximately $1,158,696. The disclosure for this sale can be found here. Insiders have sold 11,216 shares of company stock valued at $2,046,617 in the last quarter. Corporate insiders own 1.21% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Atlantic Edge Private Wealth Management LLC purchased a new position in ResMed during the 4th quarter worth approximately $27,000. Hall Laurie J Trustee purchased a new position in shares of ResMed in the 1st quarter valued at approximately $32,000. EverSource Wealth Advisors LLC grew its stake in shares of ResMed by 224.6% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 185 shares of the medical equipment provider’s stock valued at $27,000 after purchasing an additional 128 shares during the last quarter. Planned Solutions Inc. purchased a new position in shares of ResMed in the 4th quarter valued at approximately $34,000. Finally, Riverview Trust Co purchased a new position in shares of ResMed in the 1st quarter valued at approximately $42,000. Hedge funds and other institutional investors own 54.98% of the company’s stock.

ResMed Stock Up 18.9 %

The firm has a 50 day simple moving average of $187.07 and a two-hundred day simple moving average of $172.12. The company has a market capitalization of $32.07 billion, a PE ratio of 33.50, a P/E/G ratio of 2.26 and a beta of 0.67. The company has a current ratio of 3.11, a quick ratio of 1.89 and a debt-to-equity ratio of 0.27.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It 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 technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.