ResMed (NYSE:RMD) Upgraded to “Buy” by Citigroup

Citigroup upgraded shares of ResMed (NYSE:RMD) from a neutral rating to a buy rating in a report issued on Tuesday, The Fly reports.

Other equities research analysts have also recently issued reports about the company. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised ResMed from a neutral rating to a buy rating in a research note on Tuesday. Needham & Company LLC raised ResMed from a hold rating to a buy rating and set a $229.00 target price on the stock in a research note on Monday, March 22nd. Five investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The company has an average rating of Buy and an average price target of $199.71.

Shares of RMD stock opened at $195.42 on Tuesday. The stock has a market cap of $28.44 billion, a price-to-earnings ratio of 41.94, a PEG ratio of 2.86 and a beta of 0.28. The business’s fifty day moving average is $198.60 and its 200 day moving average is $203.30. ResMed has a twelve month low of $149.16 and a twelve month high of $224.43. The company has a quick ratio of 1.80, a current ratio of 2.61 and a debt-to-equity ratio of 0.39.

ResMed (NYSE:RMD) last released its earnings results on Thursday, April 29th. The medical equipment provider reported $1.30 EPS for the quarter, topping analysts’ consensus estimates of $1.22 by $0.08. ResMed had a return on equity of 30.64% and a net margin of 22.45%. Equities research analysts expect that ResMed will post 5.21 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 17th. Shareholders of record on Thursday, May 13th will be issued a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 0.80%. The ex-dividend date of this dividend is Wednesday, May 12th. ResMed’s dividend payout ratio is 32.77%.

In related news, COO Robert Andrew Douglas sold 964 shares of the stock in a transaction that occurred on Thursday, April 15th. The shares were sold at an average price of $207.45, for a total value of $199,981.80. Following the completion of the sale, the chief operating officer now directly owns 16,701 shares of the company’s stock, valued at approximately $3,464,622.45. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Rajwant Sodhi sold 1,500 shares of the company’s stock in a transaction that occurred on Monday, March 1st. The stock was sold at an average price of $194.34, for a total transaction of $291,510.00. Following the completion of the transaction, the insider now owns 31,588 shares of the company’s stock, valued at $6,138,811.92. The disclosure for this sale can be found here. In the last three months, insiders sold 22,832 shares of company stock worth $4,484,116. 1.33% of the stock is owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in RMD. Sei Investments Co. raised its stake in shares of ResMed by 49.6% in the third quarter. Sei Investments Co. now owns 74,129 shares of the medical equipment provider’s stock valued at $12,705,000 after acquiring an additional 24,584 shares during the period. Louisiana State Employees Retirement System increased its stake in ResMed by 21.6% in the 4th quarter. Louisiana State Employees Retirement System now owns 9,000 shares of the medical equipment provider’s stock worth $1,913,000 after buying an additional 1,600 shares during the period. Cypress Capital Group purchased a new position in ResMed in the 4th quarter worth about $202,000. Bainco International Investors purchased a new position in ResMed in the 4th quarter worth about $43,000. Finally, CX Institutional increased its stake in ResMed by 21.9% in the 4th quarter. CX Institutional now owns 317 shares of the medical equipment provider’s stock worth $67,000 after buying an additional 57 shares during the period. Institutional investors and hedge funds own 68.64% of the company’s stock.

ResMed Company Profile

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep apnea, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service.

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Analyst Recommendations for ResMed (NYSE:RMD)

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