Zacks Investment Research upgraded shares of ResMed (NYSE:RMD) from a hold rating to a buy rating in a research report report published on Tuesday morning. Zacks Investment Research currently has $105.00 price objective on the medical equipment provider’s stock.
According to Zacks, “ResMed exited the second quarter fiscal 2018 on a promising note with earnings and revenues beating the Zacks Consensus Estimate. The company achieved solid double-digit global revenue growth in the quarter, led by sales from Software-as-a-Service business as well as mask products and devices. We are encouraged to note that the company is working on product innovation through extensive research and development. Among the recent developments, the company recently informed about its first self-branded portable oxygen concentrator Mobi, subject to a fiscal third-quarter launch. It has also introduced AirMini, the world's smallest PAP device. In the past three months, ResMed has outperformed the broader industry. Yet, challenges like competitive bidding and reimbursement issues continue to plague ResMed. The company also remains exposed to foreign exchange fluctuations. Rising costs and a weak gross margin are other concerns.”
RMD has been the topic of several other research reports. Needham & Company LLC reaffirmed a sell rating on shares of ResMed in a research report on Friday, October 27th. BMO Capital Markets lifted their price target on shares of ResMed from $70.00 to $74.00 and gave the company a market perform rating in a research report on Friday, October 27th. JPMorgan Chase & Co. lifted their price target on shares of ResMed from $72.00 to $73.00 and gave the company an overweight rating in a research report on Monday, October 30th. Barclays lifted their price target on shares of ResMed from $68.00 to $70.00 and gave the company an underweight rating in a research report on Friday, October 27th. Finally, Macquarie lowered shares of ResMed from a neutral rating to a sell rating in a research report on Tuesday, January 23rd. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the company. ResMed currently has a consensus rating of Hold and an average target price of $74.83.
ResMed (NYSE:RMD) last released its quarterly earnings results on Monday, January 22nd. The medical equipment provider reported $1.00 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.78 by $0.22. The firm had revenue of $601.27 million for the quarter, compared to analyst estimates of $583.77 million. ResMed had a net margin of 12.98% and a return on equity of 22.75%. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.73 EPS. analysts predict that ResMed will post 3.34 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Thursday, March 15th. Investors of record on Thursday, February 8th will be issued a $0.35 dividend. The ex-dividend date is Wednesday, February 7th. This represents a $1.40 annualized dividend and a yield of 1.47%. ResMed’s dividend payout ratio (DPR) is presently 70.00%.
In related news, CFO Brett Sandercock sold 2,000 shares of ResMed stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $93.42, for a total value of $186,840.00. Following the completion of the sale, the chief financial officer now owns 75,072 shares in the company, valued at approximately $7,013,226.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ronald R. Taylor sold 4,885 shares of ResMed stock in a transaction that occurred on Wednesday, January 24th. The shares were sold at an average price of $99.71, for a total transaction of $487,083.35. Following the completion of the sale, the director now owns 21,751 shares of the company’s stock, valued at approximately $2,168,792.21. The disclosure for this sale can be found here. Insiders sold a total of 44,783 shares of company stock valued at $4,420,848 in the last quarter. 1.77% of the stock is owned by insiders.
A number of institutional investors have recently bought and sold shares of RMD. Dimensional Fund Advisors LP grew its stake in shares of ResMed by 0.7% in the second quarter. Dimensional Fund Advisors LP now owns 379,317 shares of the medical equipment provider’s stock worth $29,535,000 after acquiring an additional 2,530 shares in the last quarter. Stifel Financial Corp grew its stake in shares of ResMed by 55.4% in the second quarter. Stifel Financial Corp now owns 9,033 shares of the medical equipment provider’s stock worth $703,000 after acquiring an additional 3,219 shares in the last quarter. Toronto Dominion Bank grew its stake in shares of ResMed by 12.8% in the second quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock worth $135,000 after acquiring an additional 197 shares in the last quarter. Shell Asset Management Co. grew its stake in shares of ResMed by 13.7% in the third quarter. Shell Asset Management Co. now owns 71,460 shares of the medical equipment provider’s stock worth $3,521,000 after acquiring an additional 8,637 shares in the last quarter. Finally, BB&T Corp grew its stake in shares of ResMed by 5.6% in the third quarter. BB&T Corp now owns 52,311 shares of the medical equipment provider’s stock worth $4,026,000 after acquiring an additional 2,792 shares in the last quarter. Hedge funds and other institutional investors own 60.46% of the company’s stock.
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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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