ResMed (RMD) Downgraded by Zacks Investment Research

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

According to Zacks, “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. However, 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.”

Other equities research analysts have also recently issued reports about the company. BMO Capital Markets increased their price target on ResMed from $70.00 to $74.00 and gave the company a “market perform” rating in a research note on Friday, October 27th. JPMorgan Chase & Co. increased their price target on ResMed from $72.00 to $73.00 and gave the company an “overweight” rating in a research note on Monday, October 30th. Northland Securities reiterated a “sell” rating and issued a $55.00 price target on shares of ResMed in a research note on Friday, October 27th. Needham & Company LLC restated a “sell” rating on shares of ResMed in a research note on Friday, October 27th. Finally, Jefferies Group restated a “sell” rating and issued a $56.00 price objective on shares of ResMed in a research note on Thursday, October 12th. Four equities research analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $70.57.

ResMed (RMD) traded up $0.06 during trading on Friday, reaching $88.79. The company’s stock had a trading volume of 585,400 shares, compared to its average volume of 490,317. The company has a debt-to-equity ratio of 0.50, a quick ratio of 3.86 and a current ratio of 4.72. ResMed has a 52 week low of $62.64 and a 52 week high of $89.21. The stock has a market capitalization of $12,591.13, a PE ratio of 35.95, a PEG ratio of 2.25 and a beta of 0.79.

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

In related news, insider David Pendarvis sold 6,364 shares of the firm’s stock in a transaction dated Friday, November 3rd. The stock was sold at an average price of $82.20, for a total transaction of $523,120.80. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Brett Sandercock sold 1,250 shares of the firm’s stock in a transaction dated Wednesday, November 1st. The stock was sold at an average price of $84.50, for a total value of $105,625.00. Following the sale, the chief financial officer now directly owns 71,772 shares in the company, valued at $6,064,734. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 158,929 shares of company stock valued at $13,181,009. Company insiders own 1.77% of the company’s stock.

Institutional investors have recently bought and sold shares of the stock. Cubist Systematic Strategies LLC acquired a new stake in ResMed in the third quarter valued at approximately $113,000. YorkBridge Wealth Partners LLC grew its holdings in ResMed by 4.9% in the second quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock valued at $115,000 after purchasing an additional 69 shares during the period. Toronto Dominion Bank grew its holdings in ResMed by 12.8% in the second quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock valued at $135,000 after purchasing an additional 197 shares during the period. BB&T Investment Services Inc. acquired a new stake in ResMed in the second quarter valued at approximately $214,000. Finally, Visionary Asset Management Inc. acquired a new stake in ResMed in the third quarter valued at approximately $214,000. 61.81% of the stock is currently owned by hedge funds and other institutional investors.

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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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