ResMed (NYSE:RMD) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Friday.
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.”
A number of other research analysts have also recently issued reports on RMD. Barclays raised their price target on shares of ResMed from $68.00 to $70.00 and gave the stock an “underweight” rating in a report on Friday, October 27th. Jefferies Group reaffirmed a “sell” rating and issued a $56.00 price target on shares of ResMed in a report on Thursday, October 12th. BMO Capital Markets raised their target price on shares of ResMed from $70.00 to $74.00 and gave the stock a “market perform” rating in a report on Friday, October 27th. JPMorgan Chase & Co. raised their target price on shares of ResMed from $72.00 to $73.00 and gave the stock an “overweight” rating in a report on Monday, October 30th. Finally, Needham & Company LLC reissued a “sell” rating on shares of ResMed in a report on Friday, October 27th. Four analysts have rated the stock with a sell rating, five have given a hold rating and four have given a buy rating to the stock. ResMed has a consensus rating of “Hold” and a consensus target price of $68.71.
ResMed (NYSE:RMD) last posted its quarterly earnings results on Thursday, October 26th. The medical equipment provider reported $0.66 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.66. The business had revenue of $523.66 million during the quarter, compared to analysts’ expectations of $506.08 million. ResMed had a net margin of 16.58% and a return on equity of 21.53%. The business’s quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the company posted $0.62 earnings per share. sell-side analysts forecast that ResMed will post 3.03 earnings per share for the current year.
In other ResMed news, insider James Hollingshead sold 7,019 shares of ResMed stock in a transaction on Monday, November 20th. The shares were sold at an average price of $84.16, for a total value of $590,719.04. Following the completion of the transaction, the insider now owns 66,409 shares of the company’s stock, valued at $5,588,981.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider David Pendarvis sold 6,364 shares of ResMed stock in a transaction on Friday, November 3rd. The shares were sold at an average price of $82.20, for a total transaction of $523,120.80. The disclosure for this sale can be found here. Insiders sold 158,929 shares of company stock valued at $13,181,009 in the last ninety days. 1.77% of the stock is owned by corporate insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cubist Systematic Strategies LLC acquired a new stake in shares of ResMed in the third quarter valued at about $113,000. YorkBridge Wealth Partners LLC grew its position in shares of ResMed by 4.9% in the second quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock valued at $115,000 after purchasing an additional 69 shares during the period. Toronto Dominion Bank grew its position in shares of ResMed by 12.8% in the second quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock valued at $135,000 after purchasing an additional 197 shares during the period. BB&T Investment Services Inc. acquired a new stake in shares of ResMed in the second quarter valued at about $214,000. Finally, Visionary Asset Management Inc. acquired a new stake in shares of ResMed in the third quarter valued at about $214,000. 61.85% of the stock is 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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