ResMed (RMD) Rating Lowered to Hold at Zacks Investment Research
Zacks Investment Research lowered shares of ResMed (NYSE:RMD) from a buy rating to a hold rating in a research report report published on Thursday morning.
According to Zacks, “Challenges like competitive bidding and reimbursement issues continue to plague ResMed. The company also remains exposed to foreign exchange fluctuations. Rising operating expenses and a weak operating margin are other major concerns. However, over the recent past, ResMed has been observed to achieve strong global revenue growth 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.”
Several other analysts also recently weighed in on RMD. Barclays lifted their price objective on ResMed from $65.00 to $68.00 and gave the company an underweight rating in a report on Monday, September 25th. Jefferies Group restated a sell rating and issued a $56.00 price objective on shares of ResMed in a report on Thursday, October 12th. Needham & Company LLC restated a sell rating on shares of ResMed in a report on Friday, October 27th. Northland Securities restated a sell rating and issued a $55.00 price objective on shares of ResMed in a report on Friday, October 27th. Finally, BMO Capital Markets lifted their price objective on ResMed from $70.00 to $74.00 and gave the company a market perform rating in a report on Friday, October 27th. Four research analysts have rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the company. The stock currently has an average rating of Hold and a consensus price target of $70.57.
ResMed (NYSE:RMD) traded up $0.74 during trading hours on Thursday, hitting $87.78. The stock had a trading volume of 339,181 shares, compared to its average volume of 463,300. ResMed has a fifty-two week low of $62.64 and a fifty-two week high of $88.49. The company has a market capitalization of $12,460.00, a P/E ratio of 35.54, a price-to-earnings-growth ratio of 2.22 and a beta of 0.78. The company has a debt-to-equity ratio of 0.50, a quick ratio of 3.86 and a current ratio of 4.72.
ResMed (NYSE:RMD) last released its earnings results on Thursday, October 26th. The medical equipment provider reported $0.66 earnings per share for the quarter, hitting the consensus estimate of $0.66. The business had revenue of $523.66 million during the quarter, compared to the consensus estimate of $506.08 million. ResMed had a return on equity of 21.53% and a net margin of 16.58%. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period last year, the company earned $0.62 earnings per share. analysts forecast that ResMed will post 3.04 EPS for the current fiscal year.
In other ResMed news, insider James Hollingshead sold 600 shares of ResMed stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $84.96, for a total value of $50,976.00. Following the transaction, the insider now owns 62,602 shares in the company, valued at $5,318,665.92. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Peter C. Farrell sold 118,392 shares of ResMed stock in a transaction dated Thursday, November 9th. The shares were sold at an average price of $82.70, for a total value of $9,791,018.40. Following the completion of the transaction, the director now owns 306,615 shares in the company, valued at approximately $25,357,060.50. The disclosure for this sale can be found here. Insiders sold 158,929 shares of company stock valued at $13,181,009 over the last 90 days. 1.77% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of RMD. Pacer Advisors Inc. grew its stake in ResMed by 8.3% in the second quarter. Pacer Advisors Inc. now owns 2,924 shares of the medical equipment provider’s stock valued at $228,000 after purchasing an additional 225 shares during the last quarter. Eaton Vance Management purchased a new position in ResMed in the second quarter valued at about $1,246,000. Franklin Resources Inc. purchased a new position in ResMed in the second quarter valued at about $397,000. Alliancebernstein L.P. grew its stake in ResMed by 3.4% in the second quarter. Alliancebernstein L.P. now owns 116,232 shares of the medical equipment provider’s stock valued at $9,051,000 after purchasing an additional 3,828 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. grew its stake in ResMed by 2.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,489 shares of the medical equipment provider’s stock valued at $272,000 after purchasing an additional 82 shares during the last quarter. Institutional investors own 61.81% of the company’s stock.
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ResMed Company Profile
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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