ResMed Inc. (RMD) Raised 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 note released on Tuesday morning.
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.”
RMD has been the topic of several other reports. BidaskClub raised ResMed from a buy rating to a strong-buy rating in a research note on Saturday, June 17th. Needham & Company LLC reissued a sell rating on shares of ResMed in a research note on Friday, September 8th. Credit Suisse Group AG cut ResMed from an outperform rating to a neutral rating in a research note on Wednesday, August 2nd. Barclays PLC boosted their target price on ResMed from $65.00 to $68.00 and gave the company an underweight rating in a research note on Monday, September 25th. Finally, Bank of America Corporation cut ResMed from a buy rating to a neutral rating in a research note on Wednesday, August 2nd. Three research analysts have rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the company. ResMed has an average rating of Hold and an average target price of $68.50.
ResMed (NYSE RMD) opened at 77.30 on Tuesday. The company has a market capitalization of $10.99 billion, a PE ratio of 32.21 and a beta of 0.77. ResMed has a 12-month low of $56.59 and a 12-month high of $81.87. The firm’s 50 day moving average price is $77.03 and its 200-day moving average price is $73.94.
ResMed (NYSE:RMD) last posted its earnings results on Tuesday, August 1st. The medical equipment provider reported $0.77 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.75 by $0.02. ResMed had a return on equity of 21.99% and a net margin of 16.56%. The firm had revenue of $556.69 million for the quarter, compared to analysts’ expectations of $557.68 million. During the same period in the previous year, the firm earned $0.74 earnings per share. The business’s revenue was up 7.3% compared to the same quarter last year. On average, equities analysts anticipate that ResMed will post $3.05 earnings per share for the current fiscal year.
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The firm also recently announced a quarterly dividend, which was paid on Thursday, September 21st. Stockholders of record on Thursday, August 17th were paid a dividend of $0.35 per share. The ex-dividend date was Tuesday, August 15th. This is a boost from ResMed’s previous quarterly dividend of $0.33. This represents a $1.40 annualized dividend and a dividend yield of 1.81%. ResMed’s payout ratio is 58.09%.
In related news, CFO Brett Sandercock sold 1,250 shares of the company’s stock in a transaction 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 sale, the chief financial officer now directly owns 65,941 shares of the company’s stock, valued at $5,114,383.96. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider David Pendarvis sold 6,364 shares of the company’s stock in a transaction on Thursday, August 3rd. The stock was sold at an average price of $72.10, for a total value of $458,844.40. Following the completion of the sale, the insider now directly owns 84,476 shares in the company, valued at $6,090,719.60. The disclosure for this sale can be found here. Insiders have sold 94,372 shares of company stock worth $7,121,832 over the last three months. Insiders own 1.77% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. YorkBridge Wealth Partners LLC grew its stake in ResMed by 4.9% in the second quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock worth $115,000 after purchasing an additional 69 shares during the period. Creative Planning grew its stake in ResMed by 97.1% in the second quarter. Creative Planning now owns 1,671 shares of the medical equipment provider’s stock worth $130,000 after purchasing an additional 823 shares during the period. Toronto Dominion Bank grew its stake in ResMed by 12.8% in the second quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock worth $135,000 after purchasing an additional 197 shares during the period. Van ECK Associates Corp grew its stake in ResMed by 7.5% in the first quarter. Van ECK Associates Corp now owns 1,945 shares of the medical equipment provider’s stock worth $140,000 after purchasing an additional 136 shares during the period. Finally, Huntington National Bank purchased a new stake in ResMed in the second quarter worth $156,000. 60.10% of the stock is currently owned by institutional investors.
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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