ResMed (NYSE:RMD) Sets New 52-Week High Following Better-Than-Expected Earnings

ResMed Inc. (NYSE:RMD)’s stock price hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $263.05 and last traded at $260.50, with a volume of 119975 shares traded. 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 return on equity of 25.53% and a net margin of 23.15%.

ResMed Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 20th. Stockholders of record on Thursday, February 13th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, February 13th. This represents a $2.12 annualized dividend and a dividend yield of 0.90%. ResMed’s dividend payout ratio is presently 28.08%.

Analyst Ratings Changes

RMD has been the subject of a number of recent analyst reports. Robert W. Baird raised their price objective on ResMed from $280.00 to $283.00 and gave the company an “outperform” rating in a research note on Friday, October 25th. The Goldman Sachs Group assumed coverage on shares of ResMed in a research note on Thursday, January 16th. They issued a “buy” rating for the company. Royal Bank of Canada increased their price objective on shares of ResMed from $224.00 to $232.00 and gave the company a “sector perform” rating in a research note on Friday, October 25th. Needham & Company LLC reissued a “hold” rating on shares of ResMed in a research report on Friday. Finally, Stifel Nicolaus began coverage on shares of ResMed in a research note on Friday, December 13th. They issued a “hold” rating and a $250.00 target price on the stock. One analyst has rated the stock with a sell rating, six have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, ResMed has an average rating of “Moderate Buy” and a consensus price target of $244.73.

Insider Transactions at ResMed

In related news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $248.74, for a total value of $497,480.00. Following the sale, the director now owns 83,204 shares of the company’s stock, valued at $20,696,162.96. This trade represents a 2.35 % decrease in their position. The transaction 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 ResMed stock in a transaction dated 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 completion of the sale, the insider now owns 21,718 shares in the company, valued at approximately $5,279,428.62. This represents a 22.10 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 11,030 shares of company stock worth $2,702,687. 0.71% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ResMed

Several large investors have recently made changes to their positions in the company. True Wealth Design LLC grew its holdings in ResMed by 2,200.0% in the 3rd quarter. True Wealth Design LLC now owns 115 shares of the medical equipment provider’s stock worth $28,000 after buying an additional 110 shares in the last quarter. Ashton Thomas Securities LLC bought a new position in shares of ResMed in the third quarter worth $34,000. Rosenberg Matthew Hamilton acquired a new position in shares of ResMed during the fourth quarter valued at $54,000. Capital Performance Advisors LLP bought a new stake in shares of ResMed during the third quarter valued at about $60,000. Finally, Quarry LP lifted its holdings in ResMed by 271.9% in the second quarter. Quarry LP now owns 331 shares of the medical equipment provider’s stock worth $63,000 after purchasing an additional 242 shares during the period. Institutional investors and hedge funds own 54.98% of the company’s stock.

ResMed Stock Down 8.1 %

The firm’s fifty day moving average is $240.17 and its two-hundred day moving average is $236.21. The firm has a market cap of $34.74 billion, a price-to-earnings ratio of 31.35, a P/E/G ratio of 1.83 and a beta of 0.70. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.92 and a quick ratio of 1.91.

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.