Bank of America Corp. Upgrades ResMed Inc. (RMD) to Buy
ResMed Inc. (NYSE:RMD) was upgraded by equities research analysts at Bank of America Corp. to a “buy” rating in a research note issued on Thursday.
RMD has been the topic of several other research reports. Zacks Investment Research lowered shares of ResMed from a “hold” rating to a “sell” rating in a research report on Wednesday. Canaccord Genuity reiterated a “hold” rating and issued a $57.00 target price on shares of ResMed in a research report on Monday, July 25th. Barclays PLC reiterated an “underweight” rating and issued a $55.00 target price on shares of ResMed in a research report on Friday, August 26th. Needham & Company LLC reiterated an “underperform” rating on shares of ResMed in a research report on Tuesday, August 30th. Finally, Jefferies Group lowered shares of ResMed from a “hold” rating to an “underperform” rating and dropped their target price for the company from $60.00 to $58.00 in a research report on Tuesday, August 23rd. Five equities research analysts have rated the stock with a sell rating, six have given a hold rating and three have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of C$58.60.
Shares of ResMed (NYSE:RMD) traded up 0.23% during trading on Thursday, reaching $64.89. 450,182 shares of the company traded hands. The firm has a 50 day moving average of $66.88 and a 200 day moving average of $62.18. The stock has a market capitalization of $9.13 billion, a PE ratio of 26.06 and a beta of 0.71. ResMed has a 52 week low of $50.48 and a 52 week high of $70.90.
ResMed (NYSE:RMD) last released its quarterly earnings results on Thursday, July 28th. The company reported $0.74 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.74. The company had revenue of $518.60 million for the quarter, compared to analyst estimates of $512.37 million. ResMed had a net margin of 18.63% and a return on equity of 23.89%. The firm’s revenue was up 14.5% on a year-over-year basis. During the same quarter last year, the business earned $0.68 earnings per share. On average, equities analysts predict that ResMed will post $2.88 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 22nd. Shareholders of record on Thursday, August 18th were paid a dividend of $0.33 per share. The ex-dividend date of this dividend was Tuesday, August 16th. This is an increase from ResMed’s previous quarterly dividend of $0.30. This represents a $1.32 dividend on an annualized basis and a yield of 2.04%. ResMed’s payout ratio is 54.32%.
In other news, CFO Brett Sandercock sold 35,000 shares of the business’s stock in a transaction that occurred on Thursday, August 11th. The shares were sold at an average price of C$70.50, for a total value of C$2,467,500.00. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Peter C. Farrell sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, July 7th. The shares were sold at an average price of C$63.62, for a total transaction of C$1,272,400.00. Following the completion of the sale, the director now directly owns 367,978 shares in the company, valued at C$23,410,760.36. The disclosure for this sale can be found here. Company insiders own 2.54% of the company’s stock.
Several large investors have recently added to or reduced their stakes in RMD. Commonwealth Equity Services Inc increased its stake in ResMed by 0.3% in the second quarter. Commonwealth Equity Services Inc now owns 5,377 shares of the company’s stock worth $340,000 after buying an additional 18 shares during the period. Citigroup Inc. increased its stake in ResMed by 2.8% in the second quarter. Citigroup Inc. now owns 1,572 shares of the company’s stock worth $100,000 after buying an additional 43 shares during the period. Northwestern Mutual Investment Management Company LLC increased its stake in ResMed by 0.3% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 24,240 shares of the company’s stock worth $1,533,000 after buying an additional 79 shares during the period. World Asset Management Inc increased its stake in ResMed by 1.2% in the second quarter. World Asset Management Inc now owns 7,346 shares of the company’s stock worth $464,000 after buying an additional 85 shares during the period. Finally, Utah Retirement Systems increased its stake in ResMed by 0.4% in the second quarter. Utah Retirement Systems now owns 25,383 shares of the company’s stock worth $1,605,000 after buying an additional 100 shares during the period. 61.07% of the stock is currently owned by institutional investors and hedge funds.
ResMed Company Profile
ResMed Inc is engaged in the development, manufacturing, distribution and marketing of medical products for the diagnosis, treatment and management of respiratory disorders, with a focus on sleep-disordered breathing (SDB). The Company develops various products for SDB and other respiratory disorders, including airflow generators, diagnostic products, mask systems, headgear and other accessories.
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