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

ResMed Inc. (NYSE:RMD)’s share price gapped up prior to trading on Friday following a better than expected earnings announcement. 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 EPS for the quarter, topping the consensus estimate of $1.91 by $0.22. ResMed had a net margin of 19.77% and a return on equity of 23.86%. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the firm posted $1.68 EPS. The firm’s revenue was up 7.2% compared to the same quarter last year.

Wall Street Analyst Weigh In

RMD has been the topic of a number of research reports. Mizuho reaffirmed a “buy” rating and issued a $215.00 price target on shares of ResMed in a research note on Wednesday, March 27th. 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. KeyCorp upped their price objective on ResMed from $227.00 to $238.00 and gave the stock an “overweight” rating in a research report on Friday. Needham & Company LLC boosted their price objective on shares of ResMed from $224.00 to $236.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Oppenheimer upped their target price on ResMed from $185.00 to $205.00 and gave the company an “outperform” rating in a research report on Tuesday, January 30th. Four investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to MarketBeat, ResMed has an average rating of “Moderate Buy” and a consensus target price of $201.50.

Insider Buying and Selling at ResMed

In other 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 value of $1,997,387.10. Following the sale, the director now owns 157,404 shares of the company’s stock, valued at $28,751,414.64. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In related news, Director Peter C. Farrell sold 10,935 shares of the 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 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 filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Michael J. Rider sold 200 shares of the firm’s stock in a transaction that occurred 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 directly owns 6,688 shares of the company’s stock, valued at $1,158,696. The disclosure for this sale can be found here. In the last three months, insiders have sold 11,216 shares of company stock valued at $2,046,617. 1.21% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Atlantic Edge Private Wealth Management LLC purchased a new position in ResMed in the 4th quarter valued at approximately $27,000. Hall Laurie J Trustee purchased a new position in shares of ResMed in the first quarter valued at $32,000. EverSource Wealth Advisors LLC raised its stake in shares of ResMed by 224.6% during the 3rd 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 during the last quarter. Planned Solutions Inc. purchased a new stake in shares of ResMed in the 4th quarter worth about $34,000. Finally, Riverview Trust Co acquired a new stake in ResMed in the 1st quarter valued at about $42,000. 54.98% of the stock is owned by hedge funds and other institutional investors.

ResMed Price Performance

The company’s fifty day simple moving average is $186.31 and its two-hundred day simple moving average is $171.47. The stock has a market capitalization of $31.48 billion, a PE ratio of 35.42, a P/E/G ratio of 2.25 and a beta of 0.67. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.89 and a current ratio of 3.11.

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.