Needham & Company LLC Reaffirms Sell Rating for ResMed Inc. (NYSE:RMD)

ResMed Inc. (NYSE:RMD)‘s stock had its “sell” rating restated by stock analysts at Needham & Company LLC in a research report issued on Friday, October 27th.

The analysts wrote, “RMD’s revenue beat consensus and its EPS met consensus in F1Q18. Organic revenue growth improved to 10% in F1Q18 from 8% in F4Q17 as RMD saw both stronger mask and flow generator growth. RMD’s gross margin met our estimate but was offset by higher than expected SG&A and this caused RMD’s operating margin to miss our estimate. While RMD’s revenue growth was very strong, its EPS growth once again lagged which is consistent with RMD’s performance in recent years. We maintain our Underperform rating since we believe that RMD’s longer-run EPS growth is lower than its large-cap peers (despite its higher revenue growth) and its multiple is at a premium (CY17E P/E of 27.1x vs. large-cap med tech peers at 25.5x).””

Other equities research analysts have also issued reports about the company. Zacks Investment Research upgraded ResMed from a “hold” rating to a “buy” rating and set a $86.00 target price for the company in a report on Thursday, October 12th. BidaskClub lowered ResMed from a “strong-buy” rating to a “buy” rating in a report on Monday, July 24th. Citigroup Inc. upgraded ResMed from a “neutral” rating to a “buy” rating in a report on Wednesday, August 2nd. BMO Capital Markets upped their price target on ResMed from $61.00 to $70.00 and gave the stock a “market perform” rating in a report on Wednesday, August 2nd. Finally, Credit Suisse Group AG lowered ResMed from an “outperform” rating to a “neutral” rating in a report on Wednesday, August 2nd. Four analysts have rated the stock with a sell rating, five have given a hold rating and four have given a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $67.57.

ResMed (NYSE:RMD) traded up $0.94 on Friday, reaching $84.00. The company had a trading volume of 918,200 shares, compared to its average volume of 873,090. ResMed has a 12-month low of $57.45 and a 12-month high of $87.81. The company has a current ratio of 4.72, a quick ratio of 3.86 and a debt-to-equity ratio of 0.50. The firm has a market cap of $11,786.54, a price-to-earnings ratio of 28.94, a P/E/G ratio of 1.85 and a beta of 0.79.

ResMed (NYSE:RMD) last posted its earnings results on Thursday, October 26th. The medical equipment provider reported $0.66 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.66. ResMed had a return on equity of 21.53% and a net margin of 16.58%. The firm had revenue of $523.66 million during the quarter, compared to analyst estimates of $506.08 million. During the same period in the previous year, the company earned $0.62 EPS. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. research analysts expect that ResMed will post 3 EPS for the current year.

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In other news, CFO Brett Sandercock sold 1,250 shares of the stock in a transaction on Friday, September 1st. The stock was sold at an average price of $77.56, for a total transaction of $96,950.00. Following the sale, the chief financial officer now owns 65,941 shares in the company, valued at $5,114,383.96. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider David Pendarvis sold 6,364 shares of the stock in a transaction on Tuesday, September 5th. The stock was sold at an average price of $77.21, for a total value of $491,364.44. Following the sale, the insider now owns 93,172 shares in the company, valued at approximately $7,193,810.12. The disclosure for this sale can be found here. Insiders sold 201,234 shares of company stock worth $16,339,637 over the last quarter. Company insiders own 1.77% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of RMD. Cubist Systematic Strategies LLC acquired a new position in shares of ResMed during the third quarter valued at $113,000. YorkBridge Wealth Partners LLC lifted its stake in shares of ResMed by 4.9% during the second quarter. YorkBridge Wealth Partners LLC now owns 1,476 shares of the medical equipment provider’s stock valued at $115,000 after acquiring an additional 69 shares during the period. Creative Planning lifted its stake in shares of ResMed by 97.1% during the second quarter. Creative Planning now owns 1,671 shares of the medical equipment provider’s stock valued at $130,000 after acquiring an additional 823 shares during the period. Toronto Dominion Bank lifted its stake in shares of ResMed by 12.8% during the second quarter. Toronto Dominion Bank now owns 1,740 shares of the medical equipment provider’s stock valued at $135,000 after acquiring an additional 197 shares during the period. Finally, Huntington National Bank acquired a new position in shares of ResMed during the second quarter valued at $156,000. 58.86% of the stock is currently owned by institutional investors and hedge funds.

ResMed Company Profile

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.

Analyst Recommendations for ResMed (NYSE:RMD)

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