ResMed (RMD) Cut to “Hold” at Zacks Investment Research
ResMed (NYSE:RMD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
According to Zacks, “ResMed exited the second quarter fiscal 2018 on a promising note with earnings and revenues beating the Zacks Consensus Estimate. The company achieved solid double-digit global revenue growth in the quarter, led by sales from Software-as-a-Service business as well as mask products and devices. We are encouraged to note that the company is working on product innovation through extensive research and development. Among the recent developments, the company recently informed about its first self-branded portable oxygen concentrator Mobi, subject to a fiscal third-quarter launch. It has also introduced AirMini, the world's smallest PAP device. In the past three months, ResMed has outperformed the broader industry. Yet, challenges like competitive bidding and reimbursement issues continue to plague ResMed. The company also remains exposed to foreign exchange fluctuations. Rising costs and a weak gross margin are other concerns.”
A number of other research analysts also recently issued reports on the stock. Northland Securities upgraded shares of ResMed from an “under perform” rating to a “market perform” rating in a research note on Tuesday, January 23rd. Macquarie downgraded shares of ResMed from a “neutral” rating to a “sell” rating in a research note on Tuesday, January 23rd. BMO Capital Markets lifted their price target on shares of ResMed to $90.00 and gave the stock a “market perform” rating in a research note on Tuesday, January 23rd. Needham & Company LLC upgraded shares of ResMed from an “underperform” rating to a “hold” rating in a research note on Tuesday, January 23rd. Finally, JPMorgan Chase & Co. lifted their price target on shares of ResMed from $72.00 to $73.00 and gave the stock an “overweight” rating in a research note on Monday, October 30th. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and four have assigned a buy rating to the company. ResMed currently has an average rating of “Hold” and a consensus price target of $76.00.
ResMed (NYSE:RMD) last issued its quarterly earnings results on Monday, January 22nd. The medical equipment provider reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.78 by $0.22. ResMed had a net margin of 12.98% and a return on equity of 22.75%. The company had revenue of $601.27 million during the quarter, compared to the consensus estimate of $583.77 million. During the same quarter in the previous year, the firm earned $0.73 earnings per share. The firm’s quarterly revenue was up 13.4% on a year-over-year basis. analysts expect that ResMed will post 3.34 earnings per share for the current fiscal year.
In other news, CFO Brett Sandercock sold 1,250 shares of the business’s stock in a transaction that occurred on Friday, December 1st. The shares were sold at an average price of $85.36, for a total transaction of $106,700.00. Following the completion of the sale, the chief financial officer now owns 79,572 shares in the company, valued at approximately $6,792,265.92. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider James Hollingshead sold 600 shares of the business’s stock in a transaction that occurred 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 sale, the insider now owns 62,602 shares of the company’s stock, valued at approximately $5,318,665.92. The disclosure for this sale can be found here. Insiders have sold a total of 168,194 shares of company stock valued at $14,615,745 in the last 90 days. Insiders own 1.77% of the company’s stock.
Several large investors have recently modified their holdings of RMD. Cubist Systematic Strategies LLC purchased a new stake in shares of ResMed during the 3rd quarter worth approximately $113,000. Calton & Associates Inc. acquired a new position in shares of ResMed in the 4th quarter valued at $115,000. Toronto Dominion Bank increased its holdings in shares of ResMed by 12.8% in the 2nd quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock valued at $135,000 after acquiring an additional 197 shares during the period. Conning Inc. acquired a new position in shares of ResMed in the 4th quarter valued at $203,000. Finally, Commerzbank Aktiengesellschaft FI acquired a new position in shares of ResMed in the 4th quarter valued at $206,000. Institutional investors and hedge funds own 61.41% of the company’s stock.
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ResMed Company Profile
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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