Stock of the Day

ResMed (RMD)

$239.23

-$3.00 (-1.2%)

Market Cap: $33.64B

About ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company 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 ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN's software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

ResMed Bull Case

Here are some ways that investors could benefit from investing in ResMed Inc.:

• ResMed Inc. demonstrated strong fundamental performance in its most recent quarterly report on August 6, 2026, where it reported earnings per share of $2.95, beating the consensus estimate of $2.89 by $0.06. This beat, combined with revenue of $1.46 billion that met analyst expectations and grew 8.6% year-over-year, indicates that the company is successfully executing its growth strategy and maintaining profitability, which is a key driver for long-term shareholder value.
• The company recently increased its quarterly dividend to $0.66 per share, up from the previous $0.60, representing a 10% increase. This move, paid on September 24, 2026, signals management's confidence in the company's cash flow generation and commitment to returning capital to shareholders, providing a growing income stream with a current dividend yield of 1.12%.
• ResMed Inc. maintains a conservative balance sheet with a debt-to-equity ratio of only 0.06 and a current ratio of 3.10, indicating strong liquidity and minimal financial risk. This financial stability allows the company to navigate economic uncertainties more effectively than peers with higher leverage, protecting shareholder equity during market downturns.
• With a beta of 0.75, ResMed Inc. exhibits lower volatility than the broader market, making it a potentially attractive defensive holding for investors seeking to reduce portfolio risk. This lower sensitivity to market swings, combined with the company's position in the essential healthcare equipment sector, offers a degree of stability that is appealing in uncertain economic environments.
• As of October 14, 2026, the stock is trading at $235.55, which is below the consensus price target of $241.69 set by sell-side analysts. This suggests that the current market price may not fully reflect the company's future earnings potential, offering a potential entry point for investors who believe the stock is undervalued relative to its fundamental performance.

ResMed Bear Case

Investors should be bearish about investing in ResMed Inc. for these reasons:

• CEO Michael Farrell has engaged in consistent stock sales under a Rule 10b5-1 trading plan, selling 4,991 shares on October 7, 2026, at an average price of $226.33. This is part of a pattern of monthly sales, including transactions in September, August, and July 2026, which may signal that insiders are taking advantage of current valuations to reduce their personal exposure, potentially indicating a lack of confidence in further short-term price appreciation.
• The consensus rating from sell-side analysts has shifted to "Hold" as of September 26, 2026, with a consensus price target of $241.69. This is a significant downgrade from the "Moderate Buy" ratings and higher price targets (such as $299.27 in early 2026) seen earlier in the year, suggesting that analysts have become more cautious about the stock's upside potential and are less bullish on its future performance.
• Short interest in ResMed Inc. has been increasing, with shares shorted rising to 12,783,009 as of September 30, 2026, up from 11,881,847 in late May 2026. This growing short interest, representing about 9.14% of the float, indicates that a significant portion of the market is betting against the stock, which could create downward pressure on the share price and increase volatility.
• Several major brokerage firms have recently lowered their price targets on ResMed Inc. shares. For example, Wells Fargo cut its target from $225.00 to $215.00, and Piper Sandler reduced its target from $233.00 to $225.00, both in August 2026. These downward revisions reflect a more conservative outlook on the company's earnings growth and valuation, which could dampen investor sentiment and limit the stock's upside.
• ResMed Inc. faces potential competitive threats from emerging treatments for sleep apnea, such as weight-loss drugs, which could reduce the demand for traditional CPAP devices. While the company is diversifying into digital health and other respiratory care solutions, the long-term impact of these alternative treatments on its core product lines remains a significant risk that could erode market share and revenue growth over time.

Recent News

• ResMed’s quarterly earnings preview: What you need to know (msn.com)
• Mizuho Adjusts Price Target on ResMed to $240 From $235 (finance.yahoo.com)