ResMed (NYSE:RMD) Shares Gap Up After Better-Than-Expected Earnings

ResMed Inc. (NYSE:RMD)’s share price gapped up before the market opened 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.

The medical equipment provider reported $2.13 earnings per share for the quarter, topping analysts’ consensus estimates of $1.91 by $0.22. The firm had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.17 billion. ResMed had a net margin of 19.77% and a return on equity of 23.86%. The business’s revenue was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.68 earnings per share.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. JPMorgan Chase & Co. raised their price target on ResMed from $160.00 to $195.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 9th. UBS Group raised 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. Mizuho reaffirmed a “buy” rating and issued a $215.00 target price on shares of ResMed in a research report on Wednesday, March 27th. Royal Bank of Canada increased their price objective on ResMed from $181.00 to $182.00 and gave the stock a “sector perform” rating in a research report on Thursday, January 25th. Finally, Oppenheimer upped their price target on shares of ResMed from $185.00 to $205.00 and gave the company an “outperform” rating in a research note on Tuesday, January 30th. Four analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat, ResMed has a consensus rating of “Moderate Buy” and a consensus target price of $201.50.

Insider Transactions at ResMed

In related news, Director Peter C. Farrell sold 10,935 shares of ResMed stock in a transaction that occurred on 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 transaction, the director now directly owns 157,404 shares of the company’s stock, valued at $28,751,414.64. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other news, General Counsel Michael J. Rider sold 200 shares of ResMed stock in a transaction on 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 sale, the general counsel now owns 6,688 shares in the company, valued at approximately $1,158,696. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Peter C. Farrell sold 10,935 shares of the firm’s stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $182.66, for a total value of $1,997,387.10. Following the completion of the sale, the director now directly owns 157,404 shares of the company’s stock, valued at approximately $28,751,414.64. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 11,216 shares of company stock worth $2,046,617. Company insiders own 1.21% of the company’s stock.

Institutional Trading of ResMed

Several hedge funds have recently bought and sold shares of RMD. Bank of New York Mellon Corp lifted its position in ResMed by 230.3% in the 1st quarter. Bank of New York Mellon Corp now owns 3,813,119 shares of the medical equipment provider’s stock valued at $755,112,000 after acquiring an additional 2,658,709 shares in the last quarter. Telos Capital Management Inc. boosted its position in shares of ResMed by 5.0% during the first quarter. Telos Capital Management Inc. now owns 28,882 shares of the medical equipment provider’s stock valued at $5,719,000 after buying an additional 1,366 shares during the last quarter. V Square Quantitative Management LLC grew its holdings in ResMed by 44.0% during the first quarter. V Square Quantitative Management LLC now owns 1,883 shares of the medical equipment provider’s stock worth $373,000 after buying an additional 575 shares in the last quarter. Simplicity Wealth LLC purchased a new stake in ResMed in the 1st quarter valued at $691,000. Finally, Bfsg LLC purchased a new position in ResMed during the 1st quarter worth $3,357,000. Institutional investors and hedge funds own 54.98% of the company’s stock.

ResMed Stock Performance

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.89 and a current ratio of 3.11. The company’s 50 day moving average price is $186.31 and its 200-day moving average price is $171.47. The stock has a market cap of $31.48 billion, a P/E ratio of 35.42, a price-to-earnings-growth ratio of 2.25 and a beta of 0.67.

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.