ResMed Inc. (RMD) Rating Increased to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of ResMed Inc. (NYSE:RMD) from a sell rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “ResMed exited the first quarter fiscal 2018 on a promising note with better-than-expected earnings and revenue performances. The company achieved solid double-digit global revenue growth this quarter, led by sales from Software-as-a-Service businesses as well as its new mask products and devices. We are encouraged to note that the company is working on product innovation through extensive research and development. The company also recently launched the AirFit N20 Classic nasal mask for positive airway pressure (PAP) treatment in Europe. In the past six months, ResMed has traded above the broader industry. However, challenges like competitive bidding and reimbursement issues continue to plague the stock. The company also remains exposed to foreign exchange fluctuations. Rising operating expenses and a weak operating margin are other major concerns.”
Several other brokerages have also issued reports on RMD. Northland Securities reiterated a sell rating and set a $55.00 price target on shares of ResMed in a report on Friday, October 27th. Credit Suisse Group lowered ResMed from an outperform rating to a neutral rating in a report on Tuesday, August 8th. BMO Capital Markets lifted their price target on ResMed from $61.00 to $70.00 and gave the company a market perform rating in a report on Wednesday, August 2nd. Jefferies Group LLC reiterated a sell rating and set a $56.00 price target on shares of ResMed in a report on Thursday, October 12th. Finally, Citigroup Inc. upgraded ResMed from a neutral rating to a buy rating in a report on Wednesday, August 2nd. Four investment analysts have rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus price target of $67.57.
ResMed (NYSE:RMD) last announced its quarterly earnings data on Thursday, October 26th. The medical equipment provider reported $0.66 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.66. ResMed had a return on equity of 21.53% and a net margin of 16.58%. The firm had revenue of $523.66 million during the quarter, compared to analyst estimates of $506.08 million. During the same period last year, the company posted $0.62 EPS. The business’s quarterly revenue was up 12.5% compared to the same quarter last year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 14th. Investors of record on Thursday, November 9th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.67%. The ex-dividend date is Wednesday, November 8th. ResMed’s payout ratio is 56.68%.
In related news, CFO Brett Sandercock sold 1,250 shares of the firm’s stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $77.56, for a total value of $96,950.00. Following the transaction, the chief financial officer now directly owns 65,941 shares of the company’s stock, valued at approximately $5,114,383.96. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard Sulpizio sold 24,390 shares of the firm’s stock in a transaction that occurred on Wednesday, August 9th. The shares were sold at an average price of $73.85, for a total value of $1,801,201.50. Following the completion of the transaction, the director now directly owns 28,819 shares in the company, valued at $2,128,283.15. The disclosure for this sale can be found here. Insiders sold a total of 80,868 shares of company stock worth $6,156,100 over the last three months. 1.77% of the stock is owned by company insiders.
Several hedge funds have recently modified their holdings of the stock. Sawtooth Solutions LLC raised its stake in shares of ResMed by 1.6% in the 2nd quarter. Sawtooth Solutions LLC now owns 3,167 shares of the medical equipment provider’s stock valued at $247,000 after acquiring an additional 49 shares in the last quarter. YorkBridge Wealth Partners LLC increased its position in ResMed by 4.9% in the 2nd quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock worth $115,000 after buying an additional 69 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in ResMed by 2.4% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,489 shares of the medical equipment provider’s stock worth $272,000 after buying an additional 82 shares during the period. Atria Investments LLC increased its position in ResMed by 3.9% in the 2nd quarter. Atria Investments LLC now owns 4,742 shares of the medical equipment provider’s stock worth $369,000 after buying an additional 178 shares during the period. Finally, Toronto Dominion Bank increased its position in ResMed by 12.8% in the 2nd quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock worth $135,000 after buying an additional 197 shares during the period. 59.66% of the stock is currently owned by institutional investors and hedge funds.
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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