ResMed Inc. (RMD) Downgraded by Zacks Investment Research
Zacks Investment Research downgraded shares of ResMed Inc. (NYSE:RMD) from a buy rating to a hold rating in a report released on Thursday morning.
According to Zacks, “ResMed exited fourth-quarter fiscal 2017 on a promising note with earnings and revenues beating the Zacks Consensus Estimate. The company achieved high single-digit global revenue growth this quarter, 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, over the last three months, ResMed is trading significantly above the broader industry. 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. Its recent published favorable study result on COPD is expected to open up new scope in this line. Yet, 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 a number of other reports. Citigroup Inc. raised shares of ResMed from a neutral rating to a buy rating in a research report on Wednesday. Needham & Company LLC reissued a sell rating on shares of ResMed in a research report on Wednesday. Jefferies Group LLC reissued a sell rating and set a $56.00 target price on shares of ResMed in a research report on Friday, April 28th. BMO Capital Markets reissued a hold rating on shares of ResMed in a research report on Friday, May 12th. Finally, Credit Suisse Group cut shares of ResMed from an outperform rating to a neutral rating in a research report on Wednesday. Four investment analysts have rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the company’s stock. ResMed currently has an average rating of Hold and an average price target of $65.63.
Shares of ResMed (RMD) traded up 2.23% during midday trading on Thursday, hitting $75.09. 1,181,814 shares of the stock were exchanged. The firm has a 50 day moving average of $77.30 and a 200 day moving average of $71.87. The firm has a market cap of $10.66 billion, a P/E ratio of 31.29 and a beta of 0.83. ResMed has a 12-month low of $56.59 and a 12-month high of $79.63.
ResMed (NYSE:RMD) last posted its earnings results on Tuesday, August 1st. The medical equipment provider reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.02. ResMed had a net margin of 16.56% and a return on equity of 21.99%. The business 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 company posted $0.74 earnings per share. The business’s revenue for the quarter was up 7.3% compared to the same quarter last year. Equities analysts forecast that ResMed will post $3.05 EPS for the current fiscal year.
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The business also recently declared a quarterly dividend, which will be paid on Thursday, September 21st. Investors of record on Thursday, August 17th will be issued a $0.35 dividend. The ex-dividend date of this dividend is 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 yield of 1.86%. ResMed’s dividend payout ratio is currently 54.77%.
In related news, CFO Brett Sandercock sold 1,250 shares of the company’s stock in a transaction on Thursday, June 1st. The shares were sold at an average price of $71.02, for a total value of $88,775.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard Sulpizio sold 65,887 shares of the company’s stock in a transaction on Thursday, June 22nd. The shares were sold at an average price of $77.82, for a total transaction of $5,127,326.34. Following the completion of the sale, the director now directly owns 4,429 shares in the company, valued at $344,664.78. The disclosure for this sale can be found here. Insiders sold 160,260 shares of company stock worth $12,212,644 over the last ninety days. 1.97% of the stock is currently owned by corporate insiders.
Hedge funds have recently bought and sold shares of the stock. Boston Private Wealth LLC raised its stake in ResMed by 11.3% in the second quarter. Boston Private Wealth LLC now owns 13,061 shares of the medical equipment provider’s stock valued at $1,017,000 after buying an additional 1,325 shares during the last quarter. BB&T Securities LLC raised its stake in ResMed by 98.9% in the second quarter. BB&T Securities LLC now owns 14,847 shares of the medical equipment provider’s stock valued at $1,156,000 after buying an additional 7,384 shares during the last quarter. KBC Group NV raised its stake in ResMed by 7.9% in the second quarter. KBC Group NV now owns 27,212 shares of the medical equipment provider’s stock valued at $2,119,000 after buying an additional 1,993 shares during the last quarter. BNP Paribas Arbitrage SA raised its stake in ResMed by 58.4% in the second quarter. BNP Paribas Arbitrage SA now owns 78,102 shares of the medical equipment provider’s stock valued at $6,082,000 after buying an additional 28,801 shares during the last quarter. Finally, Comerica Bank raised its stake in ResMed by 0.7% in the second quarter. Comerica Bank now owns 125,554 shares of the medical equipment provider’s stock valued at $9,691,000 after buying an additional 854 shares during the last quarter. 60.65% of the stock is currently owned by hedge funds and other institutional investors.
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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