ResMed Inc. (NYSE:RMD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “ResMed is suffering from challenges like fluctuating foreign currency, competitive bidding and reimbursement issues continue to plague the stock. Despite gaining an additional tax benefit of $11.2 million in the last reported fourth quarter, the company could not enjoy this benefit as it got offset by a large tax expense ResMed incurred, in relation to an increase in the company’s foreign cash repatriation to the U.S. On a brighter note in the top-line front during the last reported quarter, the company posted robust double-digit growth in the U.S., with software-as-a-service revenue from the recently acquired Brightree as a major contributor. The company’s strong cash balance and the recently announced hike in dividend payment further boost confidence in the stock.”
Several other research analysts also recently commented on the company. Bank of America Corp. reaffirmed a “hold” rating and issued a $65.00 price objective on shares of ResMed in a research note on Sunday, July 10th. Needham & Company LLC downgraded ResMed from a “hold” rating to an “underperform” rating in a research note on Monday, June 27th. JPMorgan Chase & Co. downgraded ResMed from an “overweight” rating to a “neutral” rating in a research note on Monday, September 19th. Jefferies Group downgraded ResMed from a “hold” rating to an “underperform” rating and decreased their price objective for the stock from $60.00 to $58.00 in a research note on Tuesday, August 23rd. Finally, Northland Securities set a $50.00 price objective on ResMed and gave the stock a “sell” rating in a research note on Monday, August 29th. Five research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the company. ResMed has a consensus rating of “Hold” and an average price target of C$58.60.
Shares of ResMed (NYSE:RMD) traded down 0.45% during mid-day trading on Wednesday, reaching $64.21. The company’s stock had a trading volume of 174,086 shares. The stock has a market capitalization of $9.03 billion, a P/E ratio of 25.79 and a beta of 0.71. ResMed has a 12-month low of $50.47 and a 12-month high of $70.90. The company’s 50-day moving average price is $67.05 and its 200-day moving average price is $62.16.
ResMed (NYSE:RMD) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.74 EPS for the quarter, hitting the consensus estimate of $0.74. ResMed had a return on equity of 23.89% and a net margin of 18.63%. The firm had revenue of $518.60 million for the quarter, compared to the consensus estimate of $512.37 million. During the same quarter last year, the company earned $0.68 earnings per share. The business’s revenue for the quarter was up 14.5% compared to the same quarter last year. On average, equities research analysts forecast that ResMed will post $2.88 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Thursday, September 22nd. Shareholders of record on Thursday, August 18th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.05%. The ex-dividend date of this dividend was Tuesday, August 16th. This is a boost from ResMed’s previous quarterly dividend of $0.30. ResMed’s dividend payout ratio (DPR) is currently 54.32%.
In other ResMed news, CFO Brett Sandercock sold 35,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 11th. The stock was sold at an average price of C$70.50, for a total transaction of C$2,467,500.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael J. Farrell sold 5,975 shares of the firm’s stock in a transaction that occurred on Thursday, September 15th. The shares were sold at an average price of C$64.84, for a total value of C$387,419.00. The disclosure for this sale can be found here. Company insiders own 2.54% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Citigroup Inc. boosted its position in ResMed by 2.8% in the second quarter. Citigroup Inc. now owns 1,572 shares of the company’s stock valued at $100,000 after buying an additional 43 shares in the last quarter. Mizuho Asset Management Co. Ltd. boosted its position in ResMed by 102.6% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,692 shares of the company’s stock valued at $107,000 after buying an additional 857 shares in the last quarter. Sei Investments Co. boosted its position in ResMed by 35.4% in the second quarter. Sei Investments Co. now owns 1,722 shares of the company’s stock valued at $109,000 after buying an additional 450 shares in the last quarter. Glenmede Trust Co. NA boosted its position in ResMed by 7.3% in the second quarter. Glenmede Trust Co. NA now owns 2,625 shares of the company’s stock valued at $165,000 after buying an additional 179 shares in the last quarter. Finally, Pacer Advisors Inc. boosted its position in ResMed by 18.9% in the second quarter. Pacer Advisors Inc. now owns 2,656 shares of the company’s stock valued at $168,000 after buying an additional 422 shares in the last quarter. Institutional investors and hedge funds own 61.07% of the company’s stock.
ResMed Company Profile
ResMed Inc is engaged in the development, manufacturing, distribution and marketing of medical products for the diagnosis, treatment and management of respiratory disorders, with a focus on sleep-disordered breathing (SDB). The Company develops various products for SDB and other respiratory disorders, including airflow generators, diagnostic products, mask systems, headgear and other accessories.
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