ResMed Inc. (RMD) Lowered to “Sell” at Zacks Investment Research
According to Zacks, “ResMed is suffering from challenges like fluctuating foreign currency, competitive bidding and reimbursement issues continue to plague the stock. Despite gaining an additional tax benefit of $11.2 million in the last reported fourth quarter, the company could not enjoy this benefit as it got offset by a large tax expense ResMed incurred, in relation to an increase in the company’s foreign cash repatriation to the U.S. On a brighter note in the top-line front during the last reported quarter, the company posted robust double-digit growth in the U.S., with software-as-a-service revenue from the recently acquired Brightree as a major contributor. The company’s strong cash balance and the recently announced hike in dividend payment further boost confidence in the stock.”
RMD has been the subject of several other reports. Needham & Company LLC reaffirmed a sell rating on shares of ResMed in a report on Monday, September 12th. Jefferies Group lifted their target price on shares of ResMed from $56.00 to $60.00 and gave the company a hold rating in a report on Friday, July 29th. Northland Securities set a $50.00 target price on shares of ResMed and gave the company a sell rating in a report on Monday, August 29th. JPMorgan Chase & Co. lowered shares of ResMed from an overweight rating to a neutral rating in a report on Monday, September 19th. Finally, Bank of America Corp. reaffirmed a hold rating and set a $65.00 target price on shares of ResMed in a report on Sunday, July 10th. Five investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the stock. The company has a consensus rating of Hold and a consensus target price of C$58.60.
Shares of ResMed (NYSE:RMD) traded up 0.239% during trading on Wednesday, hitting $64.895. 394,383 shares of the company were exchanged. ResMed has a 12 month low of $50.48 and a 12 month high of $70.90. The firm has a market capitalization of $9.13 billion, a PE ratio of 26.062 and a beta of 0.71. The firm’s 50-day moving average price is $66.88 and its 200 day moving average price is $62.18.
ResMed (NYSE:RMD) last released its earnings results on Thursday, July 28th. The company reported $0.74 EPS for the quarter, hitting analysts’ consensus estimates of $0.74. The company earned $518.60 million during the quarter, compared to analysts’ expectations of $512.37 million. ResMed had a net margin of 18.63% and a return on equity of 23.89%. ResMed’s revenue for the quarter was up 14.5% on a year-over-year basis. During the same period last year, the business earned $0.68 EPS. On average, equities research analysts expect that ResMed will post $2.88 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 22nd. Stockholders of record on Thursday, August 18th were given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.04%. The ex-dividend date was Tuesday, August 16th. This is a boost from ResMed’s previous quarterly dividend of $0.30. ResMed’s dividend payout ratio is currently 54.32%.
In related news, CFO Brett Sandercock sold 35,000 shares of the company’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 transaction of C$2,467,500.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider David Pendarvis sold 6,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 5th. The stock was sold at an average price of C$63.62, for a total transaction of C$381,720.00. Following the sale, the insider now owns 80,512 shares in the company, valued at C$5,122,173.44. The disclosure for this sale can be found here. Insiders own 2.54% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in RMD. Matthews International Capital Management LLC raised its position in shares of ResMed by 18,735.4% in the first quarter. Matthews International Capital Management LLC now owns 1,224,300 shares of the company’s stock valued at $70,789,000 after buying an additional 1,217,800 shares in the last quarter. Vanguard Group Inc. raised its position in shares of ResMed by 10.6% in the second quarter. Vanguard Group Inc. now owns 11,679,325 shares of the company’s stock valued at $738,483,000 after buying an additional 1,114,598 shares in the last quarter. Columbia Wanger Asset Management LLC bought a new position in shares of ResMed during the second quarter valued at approximately $66,139,000. Capital World Investors raised its position in shares of ResMed by 13.6% in the second quarter. Capital World Investors now owns 7,916,234 shares of the company’s stock valued at $500,543,000 after buying an additional 946,234 shares in the last quarter. Finally, Norges Bank bought a new position in shares of ResMed during the fourth quarter valued at approximately $49,232,000. Hedge funds and other institutional investors own 61.07% of the company’s stock.
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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