ResMed stock: buy or sell?

RMD stock price: $132.14 -2.87% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

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ResMed dropped -2.87% to $132.14 after marking all time highs on August/21.

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases.

Should I buy ResMed stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups work for ResMed stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is ResMed stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 10 ratings published for RMD stock in the last 30 days.

Is RMD a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-29UBS GroupNeutralBuy
2019-7-29Goldman Sachs GroupNeutralBuy
2019-7-16UBS GroupBuyNeutral
2019-5-6UBS GroupNeutralBuy
2019-4-18JPMorgan Chase & Co.UnderweightNeutral
2019-3-20Deutsche BankHoldBuy
2019-1-28BMO Capital MarketsOutperformPositive
2019-1-25JPMorgan Chase & Co.NeutralUnderweight
2019-1-25Goldman Sachs GroupBuyNeutral
2019-1-23Deutsche BankBuyHold

ResMed stock analysis

Daily outlook

After climbing to all-time highs several times in past weeks, ResMed dropped -2.87% to $132.14.

After reaching all time highs on Aug/21, ResMed dropped -2.87% today to $132.14. On July, SMA100d and SMA200d crossed up triggering a rise of 7.08%. Since price and SMA200d lines crossed up on May, RMD climbed $28.33 (27.29%). From a daily perspective, RMD is in a short term uptrend after plotting its last bottom ($130.69, on Aug 15th) higher than the previous bottom, and its last top ($137.38, on Aug 21st) also over the previous top. Now trading in between its last bottom and last top RMD might consolidate in a plain range, waiting to break out over $137.38 or down under $130.69. On Aug/21, RMD hit new all time highs, pushing higher previous ATH of $136.89 recorded on Tuesday. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

RMD stock chart (daily)

Weekly outlook

After climbing for 4 weeks, this week ResMed depreciated a bad -1.71%, closing at $132.14.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $125.43 resistance. It hit new all-time highs again this week, setting highs to $137.38. Since late June when SMA20w and SMA40w crossed up, RMD price gained $12.42 per share (10.37%). Since late April when RMD stock price broke up the SMA40w line, it gained $28.84 (27.92%).

RMD stock chart (weekly)

ResMed stock price history

ResMed stock went public on June 2nd, 1995 with a price of $0.661. Since then, RMD stock surged a 19,921.20%, with an average of 830.10% per year. If you had invested right after RMD's IPO a $1,000 in ResMed stock in 1995, it would worth $199,212.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ResMed stock historical price chart

RMD stock reached all-time highs on August/21 with a price of $137.38.

ResMed stock price target is $130.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' RMD stock price predictions in the hope that they will be met as they may be wrong and not met. We found 2 price predictions for RMD stock released in the last 30 days:
RMD stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-29UBS GroupUpgrades$122.00$140.0014.8%
2019-1-28BMO Capital MarketsLowers Targetn/a$120.00-
(in average)$122.00$130.007.0%
Moving in a range from $140.00 and $120.00, the price prediction for ResMed stock is $130.00. In average, analysts' outlook on RMD price forecast is positive, increasing the target by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when ResMed posted its last earnings report, it skyrocketed a dazzling 30.70%. Unfortunately, reported EPS is not yet available in our database.
RMD earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.66n/a
2017-Q2-n/a0.71n/a
2017-Q32017-10-260.660.660.0%
2017-Q42018-01-220.78128.2%
2018-Q12018-04-260.830.9210.8%
2018-Q22018-08-020.90.955.6%
2018-Q32018-10-250.80.811.3%
2018-Q42019-01-240.9515.3%
2019-Q12019-04-240.86n/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a dazzling increase of 13.23% to $2,340.20 million dollars. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) decreased a -3.08% to 13.49%.

To have an up to date view of the financial situation of ResMed, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual ResMed TTM sales up to were $1,863.01 and earnings were $340.19 M dollars. When comparing this TTM figures with the last reported annuality, we can review ResMed business evolution since June 2018: Annual revenues up to , compared to lastest yearly report, plummed a scary -20.39%. Regarding profit margin, ResMed raised 4.77% to 13.49%

RMD annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,510 M-$307 M20.3%-
2014$1,550 M2.65%$345 M22.3%12.42%
2015$1,679 M8.32%$353 M21.0%2.21%
2016$1,839 M9.52%$352 M19.2%-0.14%
2017$2,067 M12.40%$342 M16.6%-2.87%
2018$2,340 M13.23%$316 M13.5%-7.80%
TTM $1,863 M-20.39%$340 M18.3%7.79%

Quarterly financial results

ResMed reported M in sales for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter earnings marked million with a profit margin of . Profit margin remained constant a 0.00% compared to previous quarter when profit margin was 19.14%. When comparing sales to same quarter last year, ResMed sales marked a bloodcurdling decrease and plunged a -100.00%.
RMD quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$514 M-$88 M17.1%-
2017-Q2$557 M8.26%$102 M18.3%15.70%
2017-Q3$524 M-5.93%$86 M16.4%-15.23%
2017-Q4$601 M14.82%$10 M1.6%-88.94%
2018-Q1$592 M-1.60%$110 M18.6%1,055.93%
2018-Q2$624 M5.41%$110 M17.6%-0.29%
2018-Q3$588 M-5.67%$106 M18.0%-3.71%
2018-Q4$651 M10.68%$125 M19.1%17.88%

ResMed ownership

When you are planning to invest in a company, it's always worth to review its ownership structure.

ResMed shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.21% of all shares.

In case of ResMed stock, 71.01% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for RMD stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

RMDAHPIELMDINGNLLIT
Market cap$18.9 B$6.1 M$44.8 M$980.7 M$15.1 M
Total shares143.4 M4.0 M8.4 M21.9 M17.8 M
Float shares142.4 M3.4 M6.8 M18.2 M3.0 M
  - Institutional holdings (%)71.0%11.2%25.9%109.7%0.7%
  - Insider holdings (%)1.2%62.9%18.5%1.2%75.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

ResMed summary

Friday, August 23rd, 2019
Open$135.97
Close$132.14
Day range$131.35 - $136.18
Previous close$136.04
Session gain-2.87%
Average true range$2.75
50d mov avg$126.12
100d mov avg$117.28
200d mov avg$110.76
Daily patternlt06a
Weekly pattern lb02c

ResMed performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For ResMed, the benchmark is made against Allied Healthcare Products, Electromed, Inogen, Lianluo Smart, Masimo, Medtronic, Koninklijke Philips and Thermo Fisher Scientific.
Stock3m6m12m
RMDResMed16.36%31.33%23.00%
AHPIAllied Healthcare...-6.13%-19.47%-35.71%
ELMDElectromed-1.66%-5.66%4.51%
INGNInogen-32.24%-68.80%-81.82%
LLITLianluo Smart-42.18%-39.72%-54.05%
MASIMasimo8.22%16.69%28.21%
MDTMedtronic16.55%16.26%15.33%
PHGKoninklijke Phili...15.19%21.09%8.22%
TMOThermo Fisher Sci...2.41%10.49%18.85%

ResMed competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for ResMed. We picked 8 companies as ResMed competitors as they are in the same industry or have similar market objectives.

Latest ResMed stock news