Zacks Investment Research Downgrades ResMed (NYSE:RMD) to Hold

ResMed (NYSE:RMD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday, January 11th.

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.”

RMD has been the subject of several other research reports. Jefferies Group reissued a “sell” rating and set a $56.00 price objective on shares of ResMed in a research report on Thursday, October 12th. BMO Capital Markets lifted their price target on ResMed from $70.00 to $74.00 and gave the stock a “market perform” rating in a research report on Friday, October 27th. Barclays lifted their price target on ResMed from $68.00 to $70.00 and gave the stock an “underweight” rating in a research report on Friday, October 27th. JPMorgan Chase & Co. lifted their price target on ResMed from $72.00 to $73.00 and gave the stock an “overweight” rating in a research report on Monday, October 30th. Finally, Needham & Company LLC reaffirmed a “sell” rating on shares of ResMed in a research report on Friday, October 27th. Four equities research analysts have rated the stock with a sell rating, five have issued a hold rating and four have given a buy rating to the company. ResMed has a consensus rating of “Hold” and a consensus target price of $70.57.

ResMed (NYSE RMD) traded up $0.87 during trading hours on Thursday, reaching $88.73. 569,300 shares of the company traded hands, compared to its average volume of 481,673. The company has a market capitalization of $12,467.68, a PE ratio of 35.92, a P/E/G ratio of 2.22 and a beta of 0.79. ResMed has a twelve month low of $62.64 and a twelve month high of $89.10. The company has a current ratio of 4.72, a quick ratio of 3.86 and a debt-to-equity ratio of 0.50.

ResMed (NYSE:RMD) last announced its quarterly earnings data on Thursday, October 26th. The medical equipment provider reported $0.66 EPS for the quarter, meeting the consensus estimate of $0.66. The business had revenue of $523.66 million during the quarter, compared to analyst estimates of $506.08 million. ResMed had a return on equity of 21.53% and a net margin of 16.58%. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.62 earnings per share. analysts predict that ResMed will post 3.04 earnings per share for the current fiscal year.

In other ResMed news, insider James Hollingshead sold 7,019 shares of the business’s stock in a transaction dated Monday, November 20th. The stock was sold at an average price of $84.16, for a total transaction of $590,719.04. Following the completion of the sale, the insider now directly owns 66,409 shares in the company, valued at approximately $5,588,981.44. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider David Pendarvis sold 6,364 shares of the business’s stock in a transaction dated Friday, November 3rd. The shares were sold at an average price of $82.20, for a total value of $523,120.80. The disclosure for this sale can be found here. In the last three months, insiders sold 158,929 shares of company stock valued at $13,181,009. 1.77% of the stock is owned by insiders.

Several large investors have recently made changes to their positions in RMD. Cubist Systematic Strategies LLC bought a new position in shares of ResMed during the 3rd quarter valued at approximately $113,000. YorkBridge Wealth Partners LLC grew its stake in shares of ResMed by 4.9% during the 2nd quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock valued at $115,000 after acquiring an additional 69 shares during the period. Toronto Dominion Bank grew its stake in shares of ResMed by 12.8% during 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. BB&T Investment Services Inc. bought a new position in shares of ResMed during the 2nd quarter valued at approximately $214,000. Finally, Visionary Asset Management Inc. bought a new position in shares of ResMed during the 3rd quarter valued at approximately $214,000. Institutional investors own 61.81% of the company’s stock.

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About ResMed

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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