ResMed (RMD) Trading Up 5.7% on Better-Than-Expected Earnings

ResMed Inc. (NYSE:RMD) shares were up 5.7% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $104.80 and last traded at $104.10. Approximately 1,953,066 shares changed hands during trading, an increase of 182% from the average daily volume of 693,030 shares. The stock had previously closed at $98.50.

The medical equipment provider reported $0.81 earnings per share for the quarter, beating analysts’ consensus estimates of $0.80 by $0.01. The business had revenue of $588.28 million for the quarter, compared to the consensus estimate of $576.66 million. ResMed had a net margin of 13.94% and a return on equity of 25.82%.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 13th. Stockholders of record on Thursday, November 8th will be issued a dividend of $0.37 per share. The ex-dividend date is Wednesday, November 7th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.42%. ResMed’s dividend payout ratio is currently 41.93%.



A number of research analysts have recently weighed in on RMD shares. Credit Suisse Group upgraded shares of ResMed from a “neutral” rating to an “outperform” rating in a report on Friday. BMO Capital Markets raised their price target on shares of ResMed from $107.00 to $109.00 and gave the company a “market perform” rating in a report on Friday. Goldman Sachs Group started coverage on shares of ResMed in a report on Sunday, July 1st. They set a “buy” rating on the stock. Finally, Zacks Investment Research downgraded shares of ResMed from a “buy” rating to a “hold” rating in a report on Monday, July 16th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and five have issued a buy rating to the company. ResMed has an average rating of “Hold” and a consensus target price of $100.67.

In related news, CFO Brett Sandercock sold 2,000 shares of ResMed stock in a transaction on Monday, October 15th. The shares were sold at an average price of $103.16, for a total value of $206,320.00. Following the transaction, the chief financial officer now owns 71,232 shares in the company, valued at approximately $7,348,293.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider James Hollingshead sold 600 shares of ResMed stock in a transaction on Wednesday, August 1st. The stock was sold at an average price of $105.93, for a total transaction of $63,558.00. The disclosure for this sale can be found here. Insiders sold a total of 13,420 shares of company stock worth $1,468,482 in the last quarter. Insiders own 1.24% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Meeder Asset Management Inc. bought a new position in shares of ResMed during the 2nd quarter worth about $131,000. Qube Research & Technologies Ltd bought a new position in shares of ResMed during the 2nd quarter worth about $148,000. Cerebellum GP LLC bought a new position in shares of ResMed during the 3rd quarter worth about $186,000. Piedmont Investment Advisors LLC bought a new position in shares of ResMed during the 2nd quarter worth about $167,000. Finally, First Hawaiian Bank bought a new position in shares of ResMed during the 3rd quarter worth about $201,000. Hedge funds and other institutional investors own 63.93% of the company’s stock.

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.56 and a current ratio of 2.08. The firm has a market capitalization of $14.06 billion, a PE ratio of 29.49, a PEG ratio of 2.53 and a beta of 0.87.

About ResMed (NYSE:RMD)

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. 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, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.

Further Reading: Leveraged Buyout (LBO)

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