Zacks Investment Research Upgrades ResMed Inc. (RMD) to “Hold”
ResMed Inc. (NYSE:RMD) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “ResMed achieved strong global revenue growth over the past few quarters, 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, 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. Also, its recent published favorable study result on COPD buoys optimism. Over the last six months, ResMed has been observed to trade above the broader industry. However, we remain skeptical on certain fundamental factors that may weigh down the stock. In this regard, 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.”
Several other equities research analysts have also recently weighed in on RMD. BidaskClub upgraded ResMed from a “buy” rating to a “strong-buy” rating in a report on Saturday, June 17th. Bank of America Corporation cut ResMed from a “buy” rating to a “neutral” rating in a report on Wednesday, August 2nd. Credit Suisse Group cut ResMed from an “outperform” rating to a “neutral” rating in a report on Wednesday, August 2nd. Citigroup Inc. upgraded ResMed from a “neutral” rating to a “buy” rating in a report on Wednesday, August 2nd. Finally, Needham & Company LLC restated a “sell” rating on shares of ResMed in a report on Wednesday, August 2nd. Three research analysts have rated the stock with a sell rating, six have given a hold rating and three have issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $68.50.
ResMed (NYSE:RMD) opened at 77.27 on Tuesday. The company has a market capitalization of $10.99 billion, a P/E ratio of 32.20 and a beta of 0.77. ResMed has a 12 month low of $56.59 and a 12 month high of $81.87. The stock’s 50 day moving average price is $76.90 and its 200-day moving average price is $73.91.
ResMed (NYSE:RMD) last issued its earnings results on Tuesday, August 1st. The medical equipment provider reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.75 by $0.02. The company had revenue of $556.69 million during the quarter, compared to analysts’ expectations of $557.68 million. ResMed had a return on equity of 21.99% and a net margin of 16.56%. ResMed’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.74 EPS. On average, equities research analysts predict that ResMed will post $3.05 EPS for the current fiscal year.
In other ResMed news, CFO Brett Sandercock sold 1,250 shares of the company’s stock in a transaction that occurred on Monday, October 2nd. The stock was sold at an average price of $77.05, for a total transaction of $96,312.50. Following the completion of the transaction, the chief financial officer now owns 64,691 shares of the company’s stock, valued at approximately $4,984,441.55. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider James Hollingshead sold 7,140 shares of the company’s stock in a transaction that occurred on Friday, July 14th. The shares were sold at an average price of $77.43, for a total value of $552,850.20. The disclosure for this sale can be found here. Insiders have sold a total of 88,008 shares of company stock valued at $6,632,186 in the last ninety days. 1.77% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in RMD. YorkBridge Wealth Partners LLC raised its position in ResMed by 4.9% during the 2nd quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock valued at $115,000 after purchasing an additional 69 shares during the last quarter. Creative Planning raised its position in ResMed by 97.1% during the 2nd quarter. Creative Planning now owns 1,671 shares of the medical equipment provider’s stock valued at $130,000 after purchasing an additional 823 shares during the last quarter. Toronto Dominion Bank raised its position in ResMed by 12.8% during the 2nd quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock valued at $135,000 after purchasing an additional 197 shares during the last quarter. Van ECK Associates Corp raised its position in ResMed by 7.5% during the 1st quarter. Van ECK Associates Corp now owns 1,945 shares of the medical equipment provider’s stock valued at $140,000 after purchasing an additional 136 shares during the last quarter. Finally, Huntington National Bank bought a new position in ResMed during the 2nd quarter valued at approximately $156,000. 60.10% of the stock is 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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