ResMed (NYSE:RMD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The firm currently has a $116.00 target price on the medical equipment provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 12.49% from the company’s current price.

According to Zacks, “ResMed exited the third quarter on a promising note. The company achieved solid double-digit global revenue growth in the quarter, led by sales from Software-as-a-Service businesses as well as new mask products and devices. The company is also focusing on product innovation through research and development. In terms of recent developments, the company recently received reimbursement approval for mandibular repositioning devices in France. Further, the company announced that South Korea will start reimbursing diagnosis and therapeutic treatment for sleep apnea in the near term. All these factors boost investor faith in the stock. Over the past three months, ResMed has outperformed its industry. Yet, challenges like competitive bidding and reimbursement issues continue to plague ResMed. The company also remains exposed to challenging pricing scenario. Rising costs and a weak gross margin are other concerns.”

RMD has been the topic of several other research reports. UBS downgraded ResMed from a “buy” rating to a “neutral” rating in a research note on Tuesday, April 24th. William Blair reissued an “outperform” rating on shares of ResMed in a research note on Monday, April 16th. Citigroup downgraded ResMed from a “buy” rating to a “neutral” rating in a research note on Wednesday, April 4th. Needham & Company LLC reissued a “hold” rating on shares of ResMed in a research note on Wednesday, March 7th. Finally, ValuEngine raised ResMed from a “hold” rating to a “buy” rating in a research note on Thursday, March 1st. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $76.67.

Shares of ResMed opened at $103.12 on Friday, Marketbeat reports. The firm has a market cap of $14.72 billion, a P/E ratio of 36.57 and a beta of 0.91. ResMed has a 12 month low of $69.59 and a 12 month high of $104.78. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.85 and a current ratio of 3.48.

ResMed (NYSE:RMD) last issued its quarterly earnings data on Thursday, April 26th. The medical equipment provider reported $0.92 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.85 by $0.07. The business had revenue of $591.60 million for the quarter, compared to the consensus estimate of $575.75 million. ResMed had a return on equity of 23.72% and a net margin of 13.52%. The firm’s revenue was up 15.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.71 EPS. analysts expect that ResMed will post 3.53 EPS for the current year.

In other news, CFO Brett Sandercock sold 2,000 shares of the firm’s stock in a transaction dated Thursday, March 15th. The stock was sold at an average price of $98.53, for a total value of $197,060.00. Following the completion of the transaction, the chief financial officer now owns 73,072 shares in the company, valued at approximately $7,199,784.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider James Hollingshead sold 600 shares of the firm’s stock in a transaction dated Thursday, March 1st. The shares were sold at an average price of $94.01, for a total value of $56,406.00. The disclosure for this sale can be found here. Insiders sold a total of 41,823 shares of company stock valued at $4,070,426 in the last 90 days. 1.77% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in RMD. Millennium Management LLC grew its holdings in shares of ResMed by 2,526.7% in the 1st quarter. Millennium Management LLC now owns 769,536 shares of the medical equipment provider’s stock valued at $75,776,000 after acquiring an additional 740,239 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of ResMed by 191.2% in the 1st quarter. JPMorgan Chase & Co. now owns 971,754 shares of the medical equipment provider’s stock valued at $95,687,000 after acquiring an additional 638,038 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of ResMed by 507.0% in the 4th quarter. Renaissance Technologies LLC now owns 282,234 shares of the medical equipment provider’s stock valued at $23,980,000 after acquiring an additional 235,734 shares in the last quarter. Guggenheim Capital LLC grew its holdings in shares of ResMed by 46.4% in the 4th quarter. Guggenheim Capital LLC now owns 722,480 shares of the medical equipment provider’s stock valued at $61,184,000 after acquiring an additional 229,030 shares in the last quarter. Finally, Rockefeller Capital Management L.P. bought a new position in shares of ResMed in the 1st quarter valued at about $19,458,000. Institutional investors own 62.27% of the company’s stock.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes.

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