ResMed Inc. (RMD) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of ResMed Inc. (NYSE:RMD) from a hold rating to a sell rating in a research note released on Wednesday, June 28th.

According to Zacks, “In the last three months, ResMed is trading above the broader Medical Products industry. On the brighter side, ResMed’s product launches and strategies to gain traction in the SDB market are expected to boost its performance in the near term. Moreover, the company’s double-digit growth in mask sales raises optimism. Its recent published favorable study result on COPD is expected to open up new scope in this line. Yet, challenges like competitive bidding and reimbursement issues continue to plague the stock. Foreign exchange movements dented third-quarter earnings, thanks to the weaker Euro and stronger Australian dollar relative to the U.S. dollar. Rising operating expenses and a weak operating margin are other major woes for ResMed. The company’s last reported fiscal third quarter performance was also unimpressive.”

RMD has been the topic of several other reports. Citigroup Inc. downgraded ResMed from a buy rating to a neutral rating in a report on Friday, April 28th. Jefferies Group LLC reissued a sell rating and issued a $56.00 target price on shares of ResMed in a report on Friday, April 28th. BMO Capital Markets reissued a hold rating on shares of ResMed in a report on Friday, May 12th. BidaskClub raised ResMed from a buy rating to a strong-buy rating in a report on Saturday, June 17th. Finally, William Blair reissued an outperform rating on shares of ResMed in a report on Thursday, April 13th. Four equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, three have given a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of Hold and a consensus price target of $64.50.

Shares of ResMed (NYSE:RMD) opened at 77.62 on Wednesday. ResMed has a one year low of $56.59 and a one year high of $79.44. The company has a market cap of $11.01 billion, a P/E ratio of 34.04 and a beta of 0.84. The company has a 50 day moving average price of $72.98 and a 200 day moving average price of $69.45.

ResMed (NYSE:RMD) last released its quarterly earnings data on Thursday, April 27th. The medical equipment provider reported $0.71 earnings per share for the quarter, beating analysts’ consensus estimates of $0.70 by $0.01. The company had revenue of $514.20 million for the quarter, compared to the consensus estimate of $525.84 million. ResMed had a return on equity of 22.53% and a net margin of 15.96%. The company’s quarterly revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.68 earnings per share. Equities research analysts expect that ResMed will post $2.80 earnings per share for the current year.

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In other ResMed news, insider David Pendarvis sold 6,365 shares of the company’s stock in a transaction on Wednesday, May 3rd. The shares were sold at an average price of $69.55, for a total transaction of $442,685.75. Following the completion of the sale, the insider now owns 84,261 shares in the company, valued at approximately $5,860,352.55. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Brett Sandercock sold 1,250 shares of the company’s stock in a transaction on Monday, May 1st. The shares were sold at an average price of $68.60, for a total transaction of $85,750.00. Following the sale, the chief financial officer now owns 62,783 shares of the company’s stock, valued at approximately $4,306,913.80. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 180,261 shares of company stock worth $13,560,373. Company insiders own 1.97% of the company’s stock.

Several hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP boosted its stake in shares of ResMed by 1.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 364,186 shares of the medical equipment provider’s stock valued at $22,599,000 after buying an additional 6,742 shares during the last quarter. Keybank National Association OH boosted its stake in shares of ResMed by 2.0% in the fourth quarter. Keybank National Association OH now owns 10,181 shares of the medical equipment provider’s stock valued at $632,000 after buying an additional 201 shares during the last quarter. Credit Agricole S A boosted its stake in shares of ResMed by 27.7% in the fourth quarter. Credit Agricole S A now owns 103,134 shares of the medical equipment provider’s stock valued at $6,401,000 after buying an additional 22,395 shares during the last quarter. Allianz Asset Management AG boosted its stake in shares of ResMed by 5.2% in the fourth quarter. Allianz Asset Management AG now owns 191,017 shares of the medical equipment provider’s stock valued at $11,853,000 after buying an additional 9,389 shares during the last quarter. Finally, Envestnet Asset Management Inc. boosted its stake in shares of ResMed by 28.5% in the fourth quarter. Envestnet Asset Management Inc. now owns 8,806 shares of the medical equipment provider’s stock valued at $549,000 after buying an additional 1,952 shares during the last quarter. Institutional investors own 60.69% 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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