Why did the ResMed share price finish down in FY22?

The Resmed Inc (ASX: RMD) share price had a year of ups and downs on the market, finishing around 6% in the red.

Resmed shares reached a 52-week high of $40.28 on 23 August and, after heading sideways for a short time afterwards, began their journey south.

In broader market moves, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down more than 7% year to date.

What happened with the Resmed share price in FY22?

Shares in the sleep treatment company saw a series of paper losses last financial year.

After falling off its 52-week high, outlined above, the Resmed share price continued its descent and finished at a 52-week low of $27.63 on 27 May.

It was a fairly quiet year in terms of news for the company so it was no surprise to see its share price track closely to the wider healthcare sector’s performance.

Healthcare shares as a whole weakened around September 2021. Losses were compounded in the January selloff and there’s been a slow recovery ever since.

As seen on the chart below, the healthcare index and the Resmed share price both entered a period of peaks and troughs throughout the year.

The pair have tracked remarkably closely over the past 12 months to finish down in FY22.

Despite its share price struggles in FY22, analysts are still bullish on Resmed shares. Morgans rates the company a buy and says it liked the outlook on Resmed’s “unique, patient-centric, connected-care digital platform”.

In all, eight brokers are saying Resmed shares are a buy whereas six say the company’s shares are a hold right now, according to Bloomberg data.

The post Why did the ResMed share price finish down in FY22? appeared first on The Motley Fool Australia.

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More reading

• 4 ‘quality’ ASX shares to buy in scary times: expert
• Here’s how ASX healthcare shares performed in FY22
• Why this broker is tipping the ResMed share price to rise 17%
• Pricing power: 2 ASX shares that can fight stagflation
• Best ASX shares to buy in July 2022

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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