ResMed (NYSE:RMD) Shares Break Below Fifty Day Moving Average – Should You Sell?

ResMed Inc. (NYSE:RMD)’s stock price crossed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $231.87 and traded as low as $228.33. ResMed shares last traded at $230.7630, with a volume of 3,445,161 shares trading hands.

Key ResMed News

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: Quarterly results exceeded expectations. ResMed reported fiscal Q1 2027 adjusted earnings of $2.91 per share versus the $2.67 consensus estimate, while revenue rose 5.9% year over year to $1.41 billion, ahead of the $1.39 billion forecast. ResMed fiscal first-quarter results
• Positive Sentiment: Profitability and demand trends improved. Sustained demand for sleep devices, productivity gains and gross-margin expansion supported the earnings beat. EPS increased from $2.55 in the year-ago quarter, and ResMed reported a 26.94% net margin. ResMed earnings and margin growth
• Positive Sentiment: Analysts raised price targets. RBC increased its target from $262 to $288 and assigned an “outperform” rating. KeyCorp raised its target from $267 to $277 with an “overweight” rating, while Wells Fargo lifted its target from $215 to $250 and maintained “equal weight.” Citigroup raised its target from $240 to $270 but retained a “neutral” rating. Analyst target changes
• Neutral Sentiment: ResMed declared a quarterly dividend of $0.66 per share, or $2.64 annualized, representing an approximately 1.1% yield. The dividend supports shareholder returns but is unlikely to be the primary near-term stock catalyst.
• Negative Sentiment: Full-year guidance was unchanged. The lack of an outlook increase may have disappointed investors who expected the earnings beat and improving margins to result in raised expectations. The neutral ratings from Citigroup and Wells Fargo may also limit the impact of the higher price targets. ResMed maintains prior guidance

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RMD. Needham & Company LLC reiterated a “hold” rating on shares of ResMed in a report on Friday. Royal Bank Of Canada lifted their target price on ResMed from $262.00 to $288.00 and gave the stock an “outperform” rating in a research note on Friday. Robert W. Baird set a $213.00 price objective on ResMed in a research note on Friday, August 7th. Weiss Ratings upgraded shares of ResMed from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Finally, Mizuho set a $270.00 price target on ResMed in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, ResMed presently has a consensus rating of “Hold” and an average target price of $253.69.

ResMed Stock Performance

The company has a market cap of $32.45 billion, a PE ratio of 21.02, a P/E/G ratio of 1.41 and a beta of 0.75. The company has a current ratio of 3.10, a quick ratio of 2.42 and a debt-to-equity ratio of 0.06. The business has a fifty day moving average of $231.87 and a 200-day moving average of $225.43.

ResMed (NYSE:RMD) last released its quarterly earnings data on Thursday, October 29th. The medical equipment provider reported $2.91 earnings per share for the quarter, topping the consensus estimate of $2.67 by $0.24. The business had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.39 billion. ResMed had a return on equity of 25.90% and a net margin of 27.79%. The business’s revenue was up 5.9% on a year-over-year basis. During the same quarter last year, the business posted $2.55 EPS. Equities research analysts anticipate that ResMed Inc. will post 12.12 earnings per share for the current fiscal year.

ResMed Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, November 12th will be paid a $0.66 dividend. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $2.64 dividend on an annualized basis and a yield of 1.1%. ResMed’s dividend payout ratio (DPR) is presently 24.04%.

Insider Activity at ResMed

In other news, General Counsel Michael J. Rider sold 400 shares of the firm’s stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $255.00, for a total value of $102,000.00. Following the completion of the sale, the general counsel directly owned 12,318 shares of the company’s stock, valued at approximately $3,141,090. This trade represents a 3.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 970 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $234.73, for a total transaction of $227,688.10. Following the completion of the sale, the director directly owned 51,803 shares of the company’s stock, valued at approximately $12,159,718.19. This represents a 1.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 24,343 shares of company stock worth $5,396,098 over the last quarter. Corporate insiders own 0.58% of the company’s stock.

Hedge Funds Weigh In On ResMed

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of ResMed in the second quarter worth approximately $2,400,375,000. State Street Corp raised its holdings in shares of ResMed by 0.6% during the second quarter. State Street Corp now owns 6,680,735 shares of the medical equipment provider’s stock valued at $1,301,942,000 after purchasing an additional 37,567 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of ResMed by 0.7% during the first quarter. Bank of New York Mellon Corp now owns 4,925,386 shares of the medical equipment provider’s stock valued at $1,105,651,000 after purchasing an additional 34,732 shares during the last quarter. First Trust Advisors LP lifted its position in ResMed by 1.3% during the first quarter. First Trust Advisors LP now owns 1,537,825 shares of the medical equipment provider’s stock valued at $345,211,000 after purchasing an additional 20,233 shares during the period. Finally, Swedbank AB lifted its position in ResMed by 22.5% during the first quarter. Swedbank AB now owns 1,350,234 shares of the medical equipment provider’s stock valued at $303,101,000 after purchasing an additional 247,758 shares during the period. 54.98% of the stock is owned by institutional investors.

About ResMed

ResMed Inc is a medical equipment and software company that develops solutions for sleep-disordered breathing, respiratory conditions and other chronic diseases. The company is best known for its positive airway pressure (PAP) devices used to treat obstructive sleep apnea, along with masks, accessories and related patient support services.

ResMed also provides cloud-connected health technology, including remote-monitoring platforms and software used by healthcare providers, medical equipment suppliers and care organizations.