The ResMed Inc (ASX: RMD) share price is heading north during early Wednesday morning.
At the time of writing, the sleep treatment focused medical device company’s shares are up 1.40% to $28.25.
Why are ResMed shares edging higher today?
While typically a company’s shares travel lower on the ex-dividend date, this hasn’t been the case this morning. This is because of the heavy losses ResMed has recorded in the past few weeks, hitting an 11-month low of $27.51 yesterday.
It appears that bargain hunters are swooping in to take advantage of the recent share price weakness.
What does this mean for ResMed shareholders?
For those eligible for ResMed’s quarterly dividend, shareholders will receive a payment of US 4.2 cents per share on 16 June. The dividend is unfranked, which means investors will unfortunately miss out on the tax credits.
The latest dividend reflects a 7.69% increase when compared to the prior corresponding period (US 3.9 cents per share).
In case you were wondering, the company does not have a dividend reinvestment plan (DRP).
Are ResMed shares a buy now?
Following the company’s financial scorecard, a couple of brokers weighed in on the ResMed share price.
The team at Goldman Sachs cut its 12-month price target by 6% to $33.70 for the healthcare company’s shares. Its analysts believe that there is still more upside in ResMed shares despite missing its performance targets recently.
Based on the current share price, this implies an upside of about 19% for investors.
Furthermore, Macquarie also slashed its rating on ResMed shares by 2.7% to $36.50 a pop. This also implies an upside of around 29% from where the company trades today.
ResMed share price summary
Over the past 12 months, ResMed shares have gained 14% on the back of positive investor sentiment. On the other hand, the S&P/ASX 200 Index (ASX: XJO) has fallen by 1% over the same timeframe.
ResMed shares reached a 52-week high of $40.49 in August, before backtracking amid inflationary movements and soaring living costs.
Based on today’s price, ResMed commands a market capitalisation of roughly $11.41 billion and has a trailing dividend yield of 0.56%.