ResMed (RMD) Upgraded to Hold by Zacks Investment Research
Zacks Investment Research upgraded shares of ResMed (NYSE:RMD) from a sell rating to a hold rating in a research note released on Friday morning. The brokerage currently has $99.00 price target on the medical equipment provider’s stock.
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 research firms have also recently issued reports on RMD. Northland Securities reissued a sell rating and issued a $55.00 price target on shares of ResMed in a research note on Friday, October 27th. Barclays increased their price target on ResMed from $65.00 to $68.00 and gave the stock an underweight rating in a research note on Monday, September 25th. BMO Capital Markets upped their price objective on ResMed to $82.00 and gave the company a market perform rating in a report on Tuesday, December 12th. Needham & Company LLC restated a sell rating on shares of ResMed in a report on Friday, October 27th. Finally, JPMorgan Chase & Co. upped their price objective on ResMed from $72.00 to $73.00 and gave the company an overweight rating in a report on Monday, October 30th. Four investment analysts have rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating to the company’s stock. ResMed has an average rating of Hold and a consensus price target of $70.57.
ResMed (NYSE:RMD) last released its quarterly earnings results on Thursday, October 26th. The medical equipment provider reported $0.66 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.66. ResMed had a return on equity of 21.53% and a net margin of 16.58%. The company had revenue of $523.66 million during the quarter, compared to analysts’ expectations of $506.08 million. During the same quarter in the prior year, the business posted $0.62 earnings per share. The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. equities analysts expect that ResMed will post 3.04 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 14th. Stockholders of record on Thursday, November 9th were issued a $0.35 dividend. The ex-dividend date of this dividend was Wednesday, November 8th. This represents a $1.40 annualized dividend and a dividend yield of 1.59%. ResMed’s dividend payout ratio (DPR) is 56.68%.
In other news, insider James Hollingshead sold 600 shares of the company’s stock in a transaction on Tuesday, January 2nd. The stock was sold at an average price of $84.96, for a total transaction of $50,976.00. Following the completion of the sale, the insider now directly owns 62,602 shares of the company’s stock, valued at $5,318,665.92. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Brett Sandercock sold 1,250 shares of the company’s stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $84.50, for a total value of $105,625.00. Following the sale, the chief financial officer now directly owns 71,772 shares of the company’s stock, valued at $6,064,734. The disclosure for this sale can be found here. In the last 90 days, insiders sold 158,929 shares of company stock valued at $13,181,009. Insiders own 1.77% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in RMD. Schwab Charles Investment Management Inc. lifted its holdings in shares of ResMed by 1.2% during the second quarter. Schwab Charles Investment Management Inc. now owns 446,858 shares of the medical equipment provider’s stock valued at $34,797,000 after purchasing an additional 5,339 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in shares of ResMed by 21.4% during the second quarter. Victory Capital Management Inc. now owns 21,597 shares of the medical equipment provider’s stock valued at $1,682,000 after purchasing an additional 3,809 shares during the last quarter. Prudential Financial Inc. lifted its holdings in shares of ResMed by 50.5% during the second quarter. Prudential Financial Inc. now owns 131,997 shares of the medical equipment provider’s stock valued at $10,279,000 after purchasing an additional 44,266 shares during the last quarter. Pacer Advisors Inc. lifted its holdings in shares of ResMed by 8.3% during 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. Finally, Keybank National Association OH lifted its holdings in shares of ResMed by 18.1% during the second quarter. Keybank National Association OH now owns 10,886 shares of the medical equipment provider’s stock valued at $848,000 after purchasing an additional 1,672 shares during the last quarter. 61.85% of the stock is owned by institutional investors and hedge funds.
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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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