ResMed Inc. (NYSE:RMD) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “ResMed remains exposed to challenges like competitive bidding and reimbursement issues which are expected to continue to plague the stock. Rising operating expenses and a weak operating margin are other major woes for ResMed. We also remain skeptical on certain fundamental factors that may weigh down the stock. On a positive note, over the last six months ResMed has been trading above the broader industry. The company achieved strong global revenue growth over the past few quarters, 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, 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. Also, its recent published favorable study result on COPD buoys optimism.”

Several other equities research analysts have also recently commented on RMD. BMO Capital Markets boosted their price target on shares of ResMed from $61.00 to $70.00 and gave the stock a “market perform” rating in a research report on Wednesday, August 2nd. Needham & Company LLC reissued a “sell” rating on shares of ResMed in a research report on Wednesday, August 2nd. Credit Suisse Group cut shares of ResMed from an “outperform” rating to a “neutral” rating in a research report on Wednesday, August 2nd. Jefferies Group LLC reissued a “sell” rating and set a $56.00 price target on shares of ResMed in a research report on Thursday, October 12th. Finally, BidaskClub cut shares of ResMed from a “strong-buy” rating to a “buy” rating in a research report on Monday, July 24th. Four equities research analysts have rated the stock with a sell rating, five have issued a hold rating and three have given a buy rating to the company. ResMed has a consensus rating of “Hold” and a consensus target price of $68.33.

ResMed (RMD) traded down 1.06% during trading on Tuesday, reaching $78.97. The company’s stock had a trading volume of 254,868 shares. The company has a market cap of $11.23 billion, a P/E ratio of 32.90 and a beta of 0.77. The company’s 50 day moving average price is $78.09 and its 200 day moving average price is $74.56. ResMed has a 52 week low of $56.59 and a 52 week high of $81.87.

ResMed (NYSE:RMD) last issued its quarterly earnings results on Tuesday, August 1st. The medical equipment provider reported $0.77 EPS for the quarter, topping the consensus estimate of $0.75 by $0.02. ResMed had a net margin of 16.56% and a return on equity of 21.99%. The firm 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 firm posted $0.74 EPS. The company’s revenue for the quarter was up 7.3% on a year-over-year basis. On average, equities analysts anticipate that ResMed will post $3.06 earnings per share for the current fiscal year.

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In other news, Director Richard Sulpizio sold 24,390 shares of the company’s stock in a transaction dated Wednesday, August 9th. The shares were sold at an average price of $73.85, for a total value of $1,801,201.50. Following the sale, the director now directly owns 28,819 shares of the company’s stock, valued at approximately $2,128,283.15. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Brett Sandercock sold 1,250 shares of the company’s stock in a transaction dated Tuesday, August 1st. The shares were sold at an average price of $77.49, for a total transaction of $96,862.50. Following the completion of the sale, the chief financial officer now directly owns 59,258 shares in the company, valued at $4,591,902.42. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 107,232 shares of company stock worth $8,109,182. 1.77% of the stock is owned by insiders.

Institutional investors and hedge funds have recently made changes to their positions in the stock. YorkBridge Wealth Partners LLC grew its stake in ResMed by 4.9% in the 2nd quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock valued at $115,000 after buying an additional 69 shares during the last quarter. Toronto Dominion Bank grew its stake in ResMed by 26.6% in the 1st quarter. Toronto Dominion Bank now owns 1,543 shares of the medical equipment provider’s stock valued at $111,000 after buying an additional 324 shares during the last quarter. Creative Planning grew its stake in ResMed by 97.1% in the 2nd quarter. Creative Planning now owns 1,671 shares of the medical equipment provider’s stock valued at $130,000 after buying an additional 823 shares during the last quarter. Mizuho Asset Management Co. Ltd. grew its stake in ResMed by 102.6% in the 2nd quarter. Mizuho Asset Management Co. Ltd. now owns 1,692 shares of the medical equipment provider’s stock valued at $107,000 after buying an additional 857 shares during the last quarter. Finally, FineMark National Bank & Trust grew its stake in ResMed by 30.8% in the 3rd quarter. FineMark National Bank & Trust now owns 1,700 shares of the medical equipment provider’s stock valued at $110,000 after buying an additional 400 shares during the last quarter. Institutional investors and hedge funds own 60.13% of the company’s stock.

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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