ResMed (RMD) | News Based Sentiment Analysis

• ResMed kicked off September with a strong finish to fiscal year 2025, reporting Q4 EPS of $2.55 on July 31st, exceeding expectations by $0.08. Revenue reached $1.35 billion, a 10.2% year-over-year increase, despite falling slightly short of analyst forecasts. This marked the fourth consecutive quarter where the company surpassed earnings estimates, signaling consistent financial performance.
• Building on this positive momentum, ResMed increased its quarterly dividend to $0.60 per share on July 31st, up from $0.53, resulting in an annualized dividend of $2.40 and a 0.9% yield. This dividend will be payable on September 18, 2025, to investors of record as of August 14, 2025, demonstrating a commitment to returning value to shareholders.
• On September 3rd, ResMed launched the Sleep Institute, a global clinical insights initiative aimed at addressing the underdiagnosis of sleep apnea, which affects an estimated 1 billion people worldwide. This initiative will focus on research, advocacy, and partnerships, debuting at the 2025 World Sleep Congress in Singapore, positioning ResMed as a leader in sleep health.
• Despite the positive financial news, CFO Brett Sandercock sold 3,000 shares of company stock on September 2nd for $812,310, though this sale was part of a pre-arranged Rule 10b5-1 trading plan adopted on February 19, 2025. He also exercised options to acquire 2,000 shares, suggesting continued confidence in the company's long-term prospects.
• CLSA upgraded ResMed's rating to "outperform" on September 2nd, signaling increased confidence in the stock's potential. UBS Group also maintained a "buy" rating with a $325.00 price target on September 11th, further reinforcing positive analyst sentiment.
• Simply Wall St’s analysis on September 6th highlighted ResMed’s strong Q4 FY25 growth, driven by its Mask business and a rebound in Device sales, and noted the positive impact of the VirtuOx acquisition in May. The analysis projects a fair value of $291.86 for RMD, indicating a 5% upside to its current price, and forecasts revenue of $6.4 billion and earnings of $1.9 billion by 2028.
• Institutional investment activity was mixed, with United Services Automobile Association acquiring 3,441 shares valued at approximately $757,000 on September 11th, while Zurich Insurance Group Ltd FI lessened its holdings by 97.3%, selling 329,029 shares on September 12th, retaining shares valued at approximately $2,015,000.

The Investment Story: September was a strong month for ResMed, marked by robust earnings, a dividend increase, and strategic initiatives like the Sleep Institute launch, though tempered by some insider selling and mixed institutional activity.

What It Means for Investors: The positive financial results and increased shareholder returns reinforce ResMed’s position as a growth stock in the sleep apnea market. While insider selling warrants monitoring, the overall analyst and institutional sentiment remains optimistic, suggesting continued investor confidence.

Looking Ahead: Investors should monitor the impact of the Sleep Institute on long-term growth and the company’s ability to navigate potential valuation concerns. Continued growth in mask and device sales will also be key.

The Bottom Line: ResMed remains a compelling investment, supported by robust financials, a growing market, and a commitment to innovation. Despite some short-term volatility, the company appears well-positioned to deliver long-term value to shareholders.