Morgan Stanley Downgrades ResMed Inc. to Hold
Morgan Stanley has lowered its rating on ResMed Inc. to hold with a new price target of $230.
Key Points
- Morgan Stanley analyst David Bailey downgraded ResMed to hold with a $230 target on June 17, 2026.
- ResMed shares are trading at $193.94, with a market cap of $28.1 billion and a P/E ratio of 18.7.
- Insider trades include CEO Michael Farrell's planned and unplanned transactions, while Citigroup maintains a buy rating.
On June 17, 2026, Morgan Stanley analyst David Bailey downgraded ResMed Inc. (NYSE: RMD) from a previous rating to hold, setting a new price target of $230. This adjustment reflects a more cautious outlook on the company's stock, which is currently trading at $193.94.
ResMed Inc. Stock Snapshot
Shares of NYSE:RMD are currently trading near $193.94. ResMed Inc. has a market cap of approximately $28.1 billion, with a P/E ratio of 18.7 and a forward P/E of 16.0. The stock's beta is 0.782, indicating lower volatility compared to the market. Over the past year, the stock has ranged from a low of $180.27 to a high of $293.81. It has a 50-day moving average of $208.70 and a 200-day moving average of $243.42. The company maintains a current ratio of 3.0 and a quick ratio of 2.0, with a debt-to-equity ratio of 13.0.
Recent Earnings
ResMed reported revenue of approximately $5.54 billion, reflecting a growth rate of 10.8%. The company's net margin stands at 27.4%, with a return on equity of 25.2%. Earnings per share (EPS) were $10.38. The company is expected to release its next earnings report on August 6, 2026.
Dividend
ResMed pays an annual dividend rate of $2.40, yielding 1.24%. The dividend payout ratio is 22.5%, indicating a comfortable margin for ongoing payments.
Insider Buying and Selling at ResMed Inc.
Recent insider activity includes several transactions by CEO Michael Farrell. On June 8, 2026, Farrell executed a planned sale of 4,991 shares at approximately $193.96 per share. On the same day, he also made an unplanned purchase of the same number of shares at $146.34. Additionally, Michael Rider, Global General Counsel, sold 269 shares at an average price of $190.57 on June 1, 2026.
Analysts Set New Price Targets
On June 17, 2026, Morgan Stanley downgraded ResMed to hold with a $230 price target. Citigroup, meanwhile, maintained its buy rating with a target of $270 on June 15, 2026. RBC Capital also maintained a buy rating, setting a target price of $321 on May 1, 2026. The consensus among analysts is a buy rating, with an average target price of $270.60 based on 15 opinions.
About ResMed Inc.
ResMed Inc., headquartered in San Diego, California, develops, manufactures, and markets medical devices and cloud-based software for the diagnosis and management of respiratory disorders. The company's product line includes diagnostic devices for sleep apnea, cloud-based monitoring systems, and software solutions for healthcare providers. ResMed operates in the healthcare sector, specifically within the Medical Instruments & Supplies industry, and employs around 10,600 people under the leadership of CEO Michael J. Farrell.
Bottom Line
Morgan Stanley's downgrade of ResMed to a hold rating with a $230 target reflects its cautious stance on the company's near-term prospects. ResMed's stock remains an important watch for investors, given its significant market presence and ongoing innovations in healthcare technology. As always, investors should remember that analyst ratings are one of many tools to consider, and the 13F filings are backward-looking, capturing positions as of the report date.
See Also
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