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

Shares of ResMed Inc. (NYSE:RMD) 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 changing hands.

The medical equipment provider reported $2.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.91 by $0.22. The company had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.17 billion. ResMed had a return on equity of 23.86% and a net margin of 19.77%. The business’s revenue was up 7.2% on a year-over-year basis. During the same period last year, the business earned $1.68 earnings per share.

Analysts Set New Price Targets

A number of analysts recently weighed in on RMD shares. Mizuho reissued a “buy” rating and issued a $215.00 price target on shares of ResMed in a report on Wednesday, March 27th. KeyCorp lifted their price target on shares of ResMed from $227.00 to $238.00 and gave the stock an “overweight” rating in a research report on Friday. Oppenheimer lowered their price target on ResMed from $205.00 to $200.00 and set an “outperform” rating for the company in a report on Friday. Royal Bank of Canada raised their target price on shares of ResMed from $187.00 to $200.00 and gave the stock a “sector perform” rating in a report on Friday. Finally, UBS Group upped their target price on shares of ResMed from $175.00 to $180.00 and gave the stock a “neutral” rating in a research note on Thursday, January 25th. Four research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, ResMed has an average rating of “Moderate Buy” and an average target price of $202.80.

Insider Activity at ResMed

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC grew its stake in ResMed by 224.6% during the third quarter. EverSource Wealth Advisors LLC now owns 185 shares of the medical equipment provider’s stock worth $27,000 after buying an additional 128 shares in the last quarter. Atlantic Edge Private Wealth Management LLC bought a new stake in shares of ResMed in the 4th quarter valued at about $27,000. Operose Advisors LLC acquired a new position in shares of ResMed in the 3rd quarter worth approximately $32,000. Hall Laurie J Trustee bought a new stake in ResMed during the first quarter valued at $32,000. Finally, Planned Solutions Inc. bought a new stake in ResMed in the fourth quarter worth approximately $34,000. 54.98% of the stock is owned by institutional investors and hedge funds.

ResMed Stock Up 18.9 %

The company has a current ratio of 3.11, a quick ratio of 1.89 and a debt-to-equity ratio of 0.27. The company has a market cap of $32.07 billion, a price-to-earnings ratio of 36.04, a P/E/G ratio of 2.25 and a beta of 0.67. The stock’s 50-day moving average is $187.07 and its 200-day moving average is $171.97.

About ResMed

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.