Wells Fargo & Company Forecasts Strong Price Appreciation for ResMed (NYSE:RMD) Stock

ResMed (NYSE:RMD) had its price target upped by stock analysts at Wells Fargo & Company from $265.00 to $270.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the medical equipment provider’s stock. Wells Fargo & Company‘s target price points to a potential upside of 7.37% from the stock’s previous close.

A number of other brokerages also recently weighed in on RMD. UBS Group reissued a “buy” rating and issued a $345.00 price target on shares of ResMed in a report on Friday, December 12th. Robert W. Baird set a $281.00 price objective on ResMed in a research report on Friday. Piper Sandler raised their target price on ResMed from $270.00 to $275.00 and gave the stock a “neutral” rating in a research report on Friday. Stifel Nicolaus increased their price objective on shares of ResMed from $260.00 to $265.00 and gave the company a “hold” rating in a research note on Friday. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $314.00 target price on shares of ResMed in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $297.91.

ResMed Trading Down 2.4%

Shares of RMD traded down $6.15 during midday trading on Friday, hitting $251.46. 638,944 shares of the stock were exchanged, compared to its average volume of 938,833. The stock has a fifty day simple moving average of $250.90 and a 200 day simple moving average of $263.20. The firm has a market cap of $36.70 billion, a P/E ratio of 25.66, a P/E/G ratio of 1.73 and a beta of 0.88. ResMed has a 52-week low of $199.92 and a 52-week high of $293.81. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.13 and a current ratio of 2.89.

ResMed (NYSE:RMD) last announced its quarterly earnings data on Thursday, January 29th. The medical equipment provider reported $2.81 earnings per share for the quarter, topping analysts’ consensus estimates of $2.68 by $0.13. ResMed had a return on equity of 25.45% and a net margin of 27.35%.The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.40 billion. During the same quarter in the prior year, the company posted $2.43 earnings per share. ResMed’s quarterly revenue was up 11.0% on a year-over-year basis. On average, research analysts anticipate that ResMed will post 9.47 EPS for the current fiscal year.

Insider Activity at ResMed

In other ResMed news, Director Witte Jan De sold 2,055 shares of the stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $255.00, for a total value of $524,025.00. Following the sale, the director directly owned 4,261 shares in the company, valued at $1,086,555. This represents a 32.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Michael J. Farrell sold 8,011 shares of the business’s stock in a transaction on Friday, November 7th. The shares were sold at an average price of $249.75, for a total transaction of $2,000,747.25. Following the transaction, the chief executive officer owned 467,866 shares of the company’s stock, valued at $116,849,533.50. This trade represents a 1.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 21,594 shares of company stock valued at $5,403,495. 0.65% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ResMed

A number of institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in shares of ResMed by 1.6% in the third quarter. Vanguard Group Inc. now owns 19,040,440 shares of the medical equipment provider’s stock worth $5,211,940,000 after purchasing an additional 293,515 shares during the last quarter. State Street Corp increased its stake in ResMed by 1.0% in the second quarter. State Street Corp now owns 6,615,852 shares of the medical equipment provider’s stock valued at $1,706,890,000 after acquiring an additional 64,448 shares during the last quarter. Geode Capital Management LLC lifted its stake in ResMed by 2.4% during the second quarter. Geode Capital Management LLC now owns 4,215,145 shares of the medical equipment provider’s stock worth $1,083,409,000 after purchasing an additional 98,717 shares during the last quarter. Norges Bank bought a new position in shares of ResMed during the 2nd quarter valued at about $306,452,000. Finally, Nordea Investment Management AB raised its holdings in shares of ResMed by 37.2% during the 4th quarter. Nordea Investment Management AB now owns 1,084,996 shares of the medical equipment provider’s stock valued at $262,027,000 after buying an additional 294,124 shares in the last quarter. 54.98% of the stock is currently owned by institutional investors.

Key Stories Impacting ResMed

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: Q2 results beat expectations — ResMed reported revenue of $1.423B (up 11% yoy) and non‑GAAP EPS of $2.81, topping Street estimates; management cited strong demand for sleep and respiratory devices which drove margin expansion. Article Title
• Positive Sentiment: Dividend and buybacks — Board declared a $0.60 quarterly cash dividend (record Feb 12, payable Mar 19) and repurchased $175M of stock in the quarter, supporting yield and shareholder returns. Article Title
• Positive Sentiment: Margin and cash-flow improvement — Gross margin rose ~320 bps to 61.8%; operating cash flow was $340M, and non‑GAAP operating income grew ~19%, indicating improved profitability and operational leverage. Article Title
• Neutral Sentiment: Product & regulatory update — Company received FDA clearance for an AI‑enabled device (“Smart Comfort”) to personalize CPAP settings; promising long‑term for adherence but commercial impact will accrue over time. Article Title
• Neutral Sentiment: Analyst backdrop — Multiple buy/overweight ratings and a median 6‑month price target near $300 signal continued analyst support; useful context but not new catalyst. Article Title
• Negative Sentiment: Rising operating costs and one‑time charges — SG&A and R&D increased (SG&A up ~12% on constant currency) and ResMed recorded $6M restructuring charges; SG&A as a percent of revenue ticked higher which could pressure margins if spending continues. Article Title
• Negative Sentiment: Insider selling — Recent filings show multiple insider sales (no purchases) over past six months; while not unusual at large caps, heavy insider selling can be viewed negatively by some investors. Article Title

ResMed Company Profile

ResMed (NYSE: RMD) is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed’s product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.