ResMed Rallies on Institutional Buys and Analyst Upgrades as Volume Dips 33.55%

ResMed (RMD) rose 1.71% on September 4, 2025, with a trading volume of $320 million, down 33.55% from the prior day. Institutional investors increased their stakes in the medical equipment provider, including BNP Paribas Financial Markets, which boosted holdings by 13% in the first quarter, and Golden State Wealth Management LLC, which added 384.8% to its position. Multiple analysts upgraded the stock, with CLSA raising its rating to “Outperform” and William Blair assigning a “Strong-Buy” designation. The company also announced a quarterly dividend increase to $0.60 per share, up from $0.53, with a yield of 0.9%. Meanwhile, insider activity included sales by directors John Hernandez and Peter C. Farrell, though institutional ownership remains at 54.98% of shares outstanding.

Recent institutional buying highlights confidence in ResMed’s market position, with several investors significantly expanding their holdings. BNP Paribas’ 13% stake increase and Colonial Trust Co SC’s 6,250% position growth underscore institutional appetite. Analyst upgrades further reinforced positive sentiment, as CLSA, Royal Bank of Canada, and KeyCorp raised price targets and ratings. The company’s Q2 earnings beat expectations, reporting $2.55 EPS and $1.35 billion in revenue, driven by a 10.2% year-over-year sales increase. Despite insider sales, the firm’s strong revenue growth and dividend hike suggest continued focus on shareholder returns.

The dividend adjustment, reflecting a 13.2% increase from the prior quarterly payout, aligns with ResMed’s 25.24% payout ratio and reinforces its appeal to income-focused investors. However, insider sales by directors John Hernandez and Peter C. Farrell reduced their holdings by 38.9% and 1.37%, respectively, over recent months. Analysts remain cautiously optimistic, with a “Moderate Buy” consensus rating and an average target price of $278.36. Institutional ownership and upgraded analyst ratings indicate ongoing support for the stock amid broader market fluctuations.

Backtest results indicate that the stock’s recent performance aligns with historical patterns of institutional buying and analyst upgrades. Over the past 90 days, insider sales totaled 27,597 shares valued at $7.3 million, while institutional ownership grew across multiple quarters. The company’s market capitalization of $39.99 billion and P/E ratio of 28.71 reflect a balance between growth and valuation metrics.