Several brokerages have updated their recommendations and price targets on shares of ResMed (NYSE: RMD) in the last few weeks:

  • 8/8/2017 – ResMed was downgraded by analysts at Credit Suisse Group from an “outperform” rating to a “neutral” rating.
  • 8/3/2017 – ResMed was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “ResMed exited fourth-quarter fiscal 2017 on a promising note with earnings and revenues beating the Zacks Consensus Estimate. The company achieved high single-digit global revenue growth this quarter, led by sales of sleep devices, respiratory care devices, mask systems and software solutions. Also, Brightree has acted as a significant contributor to the company’s operating results through 2017. Notably, over the last three months, ResMed is trading significantly above the broader industry. We believe, ResMed’s product launches and strategies to gain traction in the SDB market are expected to boost its performance further in the near term. Its recent published favorable study result on COPD is expected to open up new scope in this line. Yet, challenges like competitive bidding and reimbursement issues continue to plague the stock. Rising operating expenses and a weak operating margin are other major woes for ResMed.”
  • 8/2/2017 – ResMed was downgraded by analysts at Bank of America Corporation from a “buy” rating to a “neutral” rating.
  • 8/2/2017 – ResMed was downgraded by analysts at Credit Suisse Group from an “outperform” rating to a “neutral” rating.
  • 8/2/2017 – ResMed was upgraded by analysts at Citigroup Inc. from a “neutral” rating to a “buy” rating.
  • 8/2/2017 – ResMed had its “sell” rating reaffirmed by analysts at Needham & Company LLC. They wrote, “RMD’s revenue missed consensus but its EPS beat consensus in F4Q17. Organic revenue growth increased to 8% in F4Q17 from 6% in F3Q17 as RMD saw higher flow generator growth partly offset by a slowdown in masks due to supply constraints in the first two months of the quarter. While RMD’s gross margin was slightly lower than expected, it was more than offset by lower than expected SG&A and R&D allowing RMD’s operating margin to beat our estimate. We maintain our Underperform rating since we believe that RMD’s longer-run revenue growth potential is similar to its large-cap peers (mid-single digit revenue growth and 8-10% EPS growth —possibly generous since we note that RMD’s EPS growth has averaged just 4% for the past three years) while its multiple is at a premium (CY17E P/E of 26.5x vs. large-cap med tech peers at 24.3x).””
  • 8/2/2017 – ResMed had its price target raised by analysts at BMO Capital Markets from $61.00 to $70.00. They now have a “market perform” rating on the stock.
  • 7/24/2017 – ResMed was downgraded by analysts at BidaskClub from a “strong-buy” rating to a “buy” rating.
  • 7/6/2017 – ResMed was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $87.00 price target on the stock. According to Zacks, “In the last one month, ResMed is trading significantly above the broader Medical Products industry. On the brighter side, ResMed’s product launches and strategies to gain traction in the SDB market are expected to boost its performance in the near term. Moreover, the company’s double-digit growth in mask sales raises optimism. Its recent published favorable study result on COPD is expected to open up new scope in this line. Yet, challenges like competitive bidding and reimbursement issues continue to plague the stock. Foreign exchange movements dented third-quarter earnings, thanks to the weaker Euro and stronger Australian dollar relative to the U.S. dollar. Rising operating expenses and a weak operating margin are other major woes for ResMed. The company’s last reported fiscal third quarter performance was also unimpressive.”
  • 6/28/2017 – ResMed was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “In the last three months, ResMed is trading above the broader Medical Products industry. On the brighter side, ResMed’s product launches and strategies to gain traction in the SDB market are expected to boost its performance in the near term. Moreover, the company’s double-digit growth in mask sales raises optimism. Its recent published favorable study result on COPD is expected to open up new scope in this line. Yet, challenges like competitive bidding and reimbursement issues continue to plague the stock. Foreign exchange movements dented third-quarter earnings, thanks to the weaker Euro and stronger Australian dollar relative to the U.S. dollar. Rising operating expenses and a weak operating margin are other major woes for ResMed. The company’s last reported fiscal third quarter performance was also unimpressive.”
  • 6/20/2017 – ResMed was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “In the last three months, ResMed is trading above the broader Medical Products industry. On the brighter side, ResMed’s product launches and strategies to gain traction in the SDB market are expected to boost its performance in the near term. Moreover, the company’s double-digit growth in mask sales raises optimism. Its recent published favorable study result on COPD is expected to open up new scope in this line. Yet, challenges like competitive bidding and reimbursement issues continue to plague the stock. Foreign exchange movements dented third-quarter earnings, thanks to the weaker Euro and stronger Australian dollar relative to the U.S. dollar. Rising operating expenses and a weak operating margin are other major woes for ResMed. The company’s last reported fiscal third quarter performance was also unimpressive.”
  • 6/17/2017 – ResMed was upgraded by analysts at BidaskClub from a “buy” rating to a “strong-buy” rating.

Shares of ResMed Inc. (RMD) traded up 0.62% on Friday, reaching $73.07. 82,317 shares of the company were exchanged. The firm has a market capitalization of $10.39 billion, a PE ratio of 30.45 and a beta of 0.83. The company’s 50 day moving average is $76.66 and its 200 day moving average is $72.21. ResMed Inc. has a 12-month low of $56.59 and a 12-month high of $79.63.

ResMed (NYSE:RMD) last released its quarterly earnings results on Tuesday, August 1st. The medical equipment provider reported $0.77 earnings per share for the quarter, beating analysts’ consensus estimates of $0.75 by $0.02. ResMed had a net margin of 16.56% and a return on equity of 21.99%. The company had revenue of $556.69 million for the quarter, compared to analyst estimates of $557.68 million. During the same period last year, the firm earned $0.74 earnings per share. The firm’s revenue was up 7.3% on a year-over-year basis. Analysts forecast that ResMed Inc. will post $3.03 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 21st. Investors of record on Thursday, August 17th will be given a dividend of $0.35 per share. This is a positive change from ResMed’s previous quarterly dividend of $0.33. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.93%. The ex-dividend date of this dividend is Tuesday, August 15th. ResMed’s dividend payout ratio (DPR) is presently 54.77%.

In related news, Director Peter C. Farrell sold 20,000 shares of the firm’s stock in a transaction dated Friday, August 4th. The shares were sold at an average price of $75.15, for a total transaction of $1,503,000.00. Following the completion of the sale, the director now owns 321,557 shares in the company, valued at $24,165,008.55. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jr. Gregor K. Emmert acquired 424,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 28th. The shares were bought at an average price of $0.06 per share, with a total value of $25,440.00. Insiders have sold 180,260 shares of company stock worth $13,715,644 over the last three months. 1.97% of the stock is owned by insiders.

ResMed Inc is a holding company. The Company is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease and other diseases.

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